Spatially distributed TiO2 nanoparticles induced an order of magnitude decrease of glass transition temperature, Tg, and chain disentanglement in waterborne acrylic coatings. Acrylic/TiO2 coatings are synthesized in situ by batch emulsion polymerization. The copolymer is based on butyl acrylate (BA), methyl methacrylate (MMA), and acrylic acid (AA) with composition 56:42:2 mol%, and nano‐TiO2 (ca. 12 nm) is incorporated up to 3 wt% content. Transmission electron microscopy (TEM) showed that TiO2 is dispersed at nearly single unit throughout the acrylic matrix. The nanoparticle reduced Tg and broadened the temperature range of the glass transition, δTg. The considerable increase of δTg suggests gradients of dynamics. Shear rheometry demonstrated that TiO2 induced chain disentanglement, the rubbery modulus Ge decreased two orders of magnitude with only 1 wt% TiO2 content thus increasing the packing length p (and the reptation tube diameter as dt = kp, k > 1). Consequently, the tensile Young's modulus E decreased an order of magnitude, relative to the neat copolymer. The reduction of Tg, the slowdown of macromolecular dynamics, the chain disentanglement and the increase of dt suggests dynamics modification due to intercalation of the entangled web by the TiO2 nanoparticles, and these results may be ascribed to a nanoconfinement effect.