The mechanistic aspects of the formation of sulfobetaine- stabilized copper nanoparticles were investigated by using in situ XANES (X-ray absorption near edge structure), UV-vis spectroscopy, and reaction calorimetry. The tetracoordinated sulfobetaine-Cu(II) complex was reduced to a stable sulfobetaine-Cu(I) complex prior to the formation of sulfobetaine-stabilized copper nanoparticles. The stability of the Cu(I) complex was found to be sensitive to the concentration of the sulfobetaine stabilizer and the addition rate of the reducing agent. It appears to exist primarily as a linear complex. A tetracoordinated Cu(I) complex as an intermediate has also been postulated. Based on the understanding from these investigations, a microfluidic process for copper nanoparticle synthesis was designed by using sulfobetaine-Cu(I) complex as the starting material. When compared with the copper nanoparticles synthesized by a conventional batch process, the microfluidic reactor process provided particles with a smaller size and narrower size distribution. The copper nanoparticles from the microreactor process could also be more easily purified and the particles were relatively stable in air. Both XRD and SAED indicated that the Cu nanoparticles synthesized have fee structure.