Ultrafine and monodispersable colloidal cobalt oxide nanoparticles were successfully synthesized quantitatively via soft chemical approach with controlled particle size and microstructural properties for their use in technological applications. The particle size, shape, and other microstructural properties are directly influenced by their reaction conditions. The FT-IR studies give information for phase purity, and ultraviolet absorption spectroscopy helps to study the optical properties. Thermal analysis gives the information about thermal stability. With the help of X-ray diffraction pattern, the size of the particle was calculated. An electron microscope studies help in morphological characterization, and Brunauer-Emmett-Teller method gives information about surface area. Cobalt oxide nanoparticle tends to orient itself with its narrow size distribution having a crystal size around 50 nm.