The present work depicts the development of stable nanogels in aqueous medium that were exploited for efficient surface-active lipase catalyzed hydrolysis of water insoluble substrates. Surfactant coated gel nanoparticles (neutral NG1, anionic NG2 and cationic NG3) were prepared from peptide amphiphilic hydrogelator (G1, G2 and G3, respectively) at different hydrophilic and lipophilic balance (HLB). Chromobacterium viscosum (CV) lipase activity towards hydrolysis of water insoluble substrates (p-nitrophyenyl-n-alkanoates (C4-C10)) in presence of nanogels got remarkably improved by ~1.7-8.0 fold in comparison to that in aqueous buffer and other self-aggregates. Increase in hydrophobicity of substrate led to notable improvement in lipase activity in hydrophilic domain (HLB>8.0) of nanogels. Micro-heterogeneous interface of small sized (10-65 nm) nanogel was found to be an appropriate scaffold for immobilizing surface-active lipase to exhibit superior catalytic efficiency. Concurrently, the flexible conformation of lipase immobilized in nanogels was reflected in its secondary structure having highest a-helix content from the circular dichroism spectra.