Nominalization which is a fundamental process in morphology and syntax, and which involves the derivation of a noun or noun phrase from another grammatical category occurs in Urhobo. The phenomenon of nominalization in Urhobo is explored here with the objective of unpacking its mode of operations, because the derivation can often be illusive. The general principles of derivational morphology which deals with word formation in syntax serve as the theoretical approach for this paper. Data gathered from different word classes in Urhobo were used to form nominals. The analysis indicates that nominalization processes in Urhobo are very productive: nominals were derived from verb, adjective, adverb, and prepositions. The derived nominals perform both grammatical (subjects, objects and complements) and derivational functions. Morphological and syntactic derivations consist of affixation, compounding, reduplication and zero derivation (i.e., conversion) which are evident in the language; every noun in Urhobo begins with a vowel and the choice of the right vowel to affix during nominalization is based on the + and – ATR (vowel harmony system) of Urhobo. Therefore, this article encourages further specialized linguistic inquiry into nominalization as a vital aspect of language structure.