Environment‐friendly and controlled release formulation is highly promising for reducing environmental pollution and achieving the most effective utilization of pesticides. As a novel “green” nanocarrier of pesticides, amphiphilic self‐assembled nanoparticles were prepared by chemical conjugation of octahydrogenated retinoic acid (OR) to the backbone of glycol chitosan (GC). In aqueous media, the synthesized OR‐GC conjugates formed nanosized particles with a diameter of 257 nm. Hydrophobic azadirachtin (AZA) was efficiently loaded into the OR‐GC nanoparticles at a feed weight ratio of up to 1:4 using a simple dialysis method, the maximum drug‐loading efficiency of which was 74%. AZA‐OR‐GC (25 wt %) nanoparticles also showed sustained release of the incorporated AZA (65% of the loaded dose was released in 7 days at 27 °C in phosphate‐buffered saline; pH 7.2). Cytotoxicity tests and cell cycle arrest assays confirmed that OR‐GC exhibits good biocompatibility; AZA‐OR‐GC (25 wt %) nanoparticles also showed favorable inhibition of cell proliferation in Sl‐1 cells compared with free AZA in organic solvents. Overall, controlled release AZA‐OR‐GC may be a promising environment‐friendly formulation for integrated pest management. © 2013 Wiley Periodicals, Inc. J. Polym. Sci., Part A: Polym. Chem. 2013, 51, 3932–3940