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Nanocrystalline mixed spinel ferrite of Co0.5Ni0.5Fe2O4 magnetic nanoparticles (MNPs) has been successfully synthesized by coprecipitation method and encapsulated by PEG-4000 with various concentrations. X-Ray Diffraction (XRD) patterns showed that nanoparticles contained Co0.5Ni0.5Fe2O4 spinel ferrite with crystallite size of 14.9 nm. After PEG-4000 encapsulation particles size decreased became 7.7 nm. Interaction Co0.5Ni0.5Fe2O4 nanoparticles with long chain PEG-4000 caused the crystal growth trap. Lattice parameter and X-Ray density have no significant difference after encapsulated PEG-4000. The coercivity (𝐻𝑐) of Co0.5Ni0.5Fe2O4 was 214 Oe. The 𝐻𝑐 decreased after PEG-4000 encapsulation became 127 Oe, which is due to the decrease of crystallite size. The maximum magnetization (Mmax) of Co0.5Ni0.5Fe2O4 was 12.0 emu/g, and decreased after PEG-4000 encapsulation to 11.7 emu/g, because PEG-4000 is paramagnetic. After the concentration of PEG-4000 increased, then the amount of paramagnetic material increase which lead maximum magnetization decrease.