Soft templates like water-in-oil emulsion drops (of 1-100μm diameter), have been used for synthesis of nanoparticles; with specific mean particle diameter and narrow particle size distribution. In this context, two separate emulsions have been reacted by an emulsion–emulsion precipitation route. Consequently, two different kinds of interacting populations coexist — emulsion drops evolving through drop coalescence and breakage, with multiple nanoparticle populations growing inside each emulsion drop. However, no model framework currently exists to simulate these two highly interacting populations, for predicting evolution of nanoparticle size. To this end, presently gold nanoparticles (GNPs) have been used as a model system, to explore the nanoparticle formation mechanism. The metal salt precursor and reducing agent (NaBH4 or N2H4) are prepared in two separate water-in-oil emulsions and are reacted upon mixing to form GNPs. A kinetic Monte Carlo (kMC) scheme accounting for drop coalescence, drop breakage, nucleation, particle growth and particle–particle coagulation was developed to handle simultaneous size and number evolution of aqueous emulsion drops and GNP populations. We find that, the mean GNP diameter decreases (from 6.9 to 3.5 nm) with increasing molar ratio (M) of reducing agent to precursor concentration. Further, increasing the precursor concentration at a fixed M, does not affect the final particle size. Our kMC simulation results not only agree well with experimental mean particle diameter and coefficient of variation (COV) of particle diameter, but was also validated with full particle size distribution of GNPs. So, M can be used as a tunable parameter for controlling GNP diameter experimentally.