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levamisole loaded chitosan nanoparticles were prepared by ionic gelation of chitosan with tri poly phosphate (TPP) ions of sodium tri poly phosphate (STPP) using 23 full factorial design. As pH of chitosan is playing important role on particle size and percentage entrapment, therefore pH of chitosan was kept at 4.0±0.2. Effect of pH adjusting agent on size was also observed when 10% ammonia solution and 0.1M sodium hydroxide were used. Precipitation of nanoparticle was observed when 0.1M sodium hydroxide was used, and thus 10% ammonia solution was selected as pH adjusting agent. Chitosan: STPP ratio X1 (4:1, 2:1), pH of STPP solution X2 (8, 10) and levamisole X3 (0.5, 2 mg/ml) were selected as factors. Particle size (Y1) and percentage entrapment (Y2) were used as responses. The main effect and interaction effect was calculated by using Yate’s method of analysis. The physical characteristics of levamisole loaded chitosan nanoparticles were evaluated using zetasizer, transmission electron microscope, differential scanning calorimetry and IR. The optimized formulation showed particle size of 126±12 nm and zeta potential of 27.4±3.5 mv. The percentage entrapment was found to be up to as high as 40%. TEM confirms that nanoparticles are dense and spherical in shape.