Biological methods are employed to yield less or non-toxic MgO nanoparticles to utilize them in biological applications. Among various biosynthesis approaches, plant extracts with phytochemicals, especially from leaves, are widely used to fabricate MgO nanoparticles, due to their high availability, rapid synthesis and ability to yield smaller stable nanoparticles. Aloe barbadensis is a succulent xerophytic plant with unique characteristics to withhold water in its leaf named parenchymal gel, which is protected by a chloroplast containing thick latex, to avoid transpiration in high temperature condition of the desert. These latex contains phytochemicals such as flavanol, quercetin, Kaempeferol, myricetin and fisetin, along with other common phytochemicals such as phenols and terpenoids, that are essential for nanoparticle formation. Further, these compounds also possess enhanced biological properties. Thus, the aim of the present study is to obtain crude phytochemical extracts from Aloe barbadensis latex and utilize them as reducing and stabilizing agent for the smaller MgO nanoparticle formation. In addition, the parameters which affect the formation of nanoparticles are identified and optimized to yield smaller MgO nanoparticles with phytochemicals as surface functional groups, to be beneficial in biomedical applications.