The control of metal–insulator transition (MIT) and magnetic properties of rare-earth nickelates remains a fundamental problem in material science. Here, we report a possible way to tune the MIT as well as the magnetic properties of NdNiO3 by reducing the crystalline size to the nanoscale. NdNiO3 nanoparticles of different sizes have been synthesized by a simple aqueous solution-based chemical method in the atmospheric pressure under oxygen. The x-ray diffraction study shows the formation of orthorhombic nanocrystals of NdNiO3 with Pbnm space group, presence of oxygen vacancies and higher octahedral distortion. The morphology and the particle size distribution have been evaluated by FESEM and TEM. The temperature dependent resistivity measurement shows the metal to insulator transition, which depends on the particle size; lower the particle size, higher the MIT temperature (TMI). Further study on the temperature dependent magnetic susceptibility shows the signature of magnetic phase transition at a temperature (Néel temperature TN), lower than the TMI, which indicates the existence of second order magnetic phase transition in our NdNiO3 nanoparticles. We have attributed the higher TMI and the origin of second order magnetic phase transition predominantly to the higher NiO6 octahedral distortion and the narrowing of bandwidth of the nanocrystalline NdNiO3, which leads to the opening of the charge transfer gap at the temperature higher than the bulk.