In this study, chitosan nanoparticles were synthesized from chitosan polymer by ionic gelation method. The chitin was first extracted from Saccharomyces cerevisiae and then deacetylated to chitosan. The presence and characterization of chitosan nanoparticles was investigated by UV-Visible Spectroscopy (UV) and scanning electron microscopy (SEM). The antioxidant property of these chitosan nanoparticles were studied and compare with that chitosan polymer. CSNPs showed higher antioxidant activity than chitosan. The cytotoxicity of this chitosan nanoparticles against CHO cell line were studied which showing very low toxic. The antioxidant property was studied by radical scavenging (DPPH) assay and cytotoxic activity was evaluated against A-431 osteosarcoma cell line by MTT assay. The characteristics of the synthesized nanoparticles suggest their application as a potential Antioxidant and Cytotoxic activity.