Nano-particle of titanium oxides was synthesised from the precursor ilmenite powder in an argon plasma jet at atmospheric pressure. The decomposition of ilmenite concentrates was investigated in a non-transferred arc thermal plasma reactor. Argon and Argon–Nitrogen were taken as plasma gases in the plasma torch. The effect of input power, plasma gases and particle size was carried out on the quality and yield of the product. Nano-powders were characterized using various techniques, viz., XRD, SEM, and TEM. Thermal equilibrium diagram was plotted to predict the thermodynamic behaviour of the system under various operating conditions. The present investigation shows significant segregation of titanium and iron-rich products in thermal plasma processing. Average particles diameters are from 10nm to 200nm.