In the present study, optimization of parameters for the preparation of nano formulated whole attenuated rabies vaccine with high immune potency and biocompatibility was synthesised. Response Surface Methodology (RSM) was adapted to study the influence of factors such as the concentration of chitosan (mg/mL), PEG (mg), acetic acid (%), sodium tripolyphosphate (M) and antigen (I.U.) on the structural, functional properties of chitosan PEG nanoparticles loaded rabies whole attenuated viral antigen (CS-PEG-NP-RVAg). Mathematical models were used to study the release kinetics of the nanoformulation adopting various plots such as Zero-order kinetics, First-order kinetics, Huguchi, and Huguchi-Crowell models. The evaluation provides insight into the controlled release of the rabies vaccine. The use of acetic acid (1%), sodium tripolyphosphate (0.1 M), antigen 1.5 (I.U.), PEG (60 µL), chitosan (75 mg) yields the desirable size of nanoformulations, immune potency, notable control release pattern Biocompatibility of the prepared nanovaccine was tested on Vero cell line, peripheral blood cells and probiotic bacterial strains. Nanoformulation, which obtained at the optimum condition was not inducing any toxic sign-on tested model system. Our study provides the basis of developing as effective CS-PEG-OV-RVAg as an effective and biocompatible vaccine formulation.