Nanoparticles have enormous potential application in drug delivery system. Chitosan nanoparticles have received plenty of attention due to their non-toxicity, biocompatibility, biodegradability and controlled drug release. The objective of the present work was to evaluate the potential of chitosan-tripolyphosphate (TPP) nanoparticles as a carrier in the preparation of Lithium loaded chitosan nanoparticles. Lithium loaded chitosan-TPP nanoparticles were prepared by using Ionotropic gelation method. The cross linking between TPP and chitosan was determined by FTIR studies. The particle size and zeta potential of nanoparticles were studied by dynamic light scattering (DLS) and zeta potential analyser. The particle size for chitosan nanoparticles and Lithium loaded chitosan nanoparticles were found to be148.4 nm and 179.0 nm respectively. The zeta potential for chitosan nanoparticles and Lithium loaded chitosan nanoparticles were found to be+35.70mV and +29mV. These nanoparticles have good loading capacity of 11% for Lithium. These studies suggest that chitosan can complex TPP to form Lithium loaded nanoparticles. Key Words: Nanoparticles, Chitosan, Ionotropic Gelation, Lithium