The preparation of titanium dioxide nanoparticles capped with stearate by sol-gel methods is presented in this paper. The nanoparticles are characterized by Fourier transform infrared spectroscopy and by X-ray photoelectron spectroscopy. Existence of the organic layer can be confirmed by the results of characterizations, which also indicate that the inorganic nuclei and organic surface layer are linked with chemical bonds. The nanoparticles are poorly crystallized based on the X-ray diffraction pattern. The mechanism of formation of the organo-capped nanoparticles is proposed to be competitive reactions between water and stearic acid, which is similar to a polymerization and inhibition processes. A structural model for organo-capped nanoparticles is also proposed. Copyright 2000 Academic Press.