The Nevirapine loaded nanoparticles were prepared by ionic gelation method and solvent evaporation method. Nanoparticles of different core: coat ratio were formulated and evaluated for process yield, loading efficiency, particle size, zeta potential, in vitro drug release, kinetic studies and stability studies there was a steady increase in the entrapment efficiency on increasing the polymer concentration in the formulations. The percentage drug entrapment efficiency is maximum for FC4 which was found to be 91.73% when compared to the formulation FE3 shows 85.46%. But, when comparing the two different methods, the formulation with Chitosan polymer shows better entrapment efficiency than with formulation with Eudragit L100 polymer. This is because Eudragit L100 contains higher amount of quaternary ammonium groups, which facilitates the diffusion of a part of entrapped drug to the surrounding medium during the preparation of nanoparticles. The in vitro release behavior from all the drug loaded batches were found to follow first order and provided sustained release over a period of 12 h. No appreciable difference was observed in the drug content of product during 90 d in which nanoparticles were stored at 5ËšC and room temperature.