pH- and temperature-sensitive hydrogel nanoparticles of copolymers of vinylpyrrolidone (VP) and acrylic acid (AA) cross-linked with NN' methylene bis acrylamide (MBA) of sizes up to 50 nm diameter loaded with marker compound FITC-dextran (mol wt. 19.3 kD) were prepared in the aqueous core of reverse micellar droplets and were dispersed in aqueous buffer. These particles have high entrapment efficiency, and the lyophilized powder can be redissolved in buffer without any significant agglomeration. The release of FITC-dextran from these particles was found to be pH- and temperature-dependent. The release was slow in acid solution, but it increased considerably as the pH of the medium was increased, The release rate was also increased with the increase of temperature.