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Nanoformulation of curcumin, (a low molecular weight hydrophobic drug) was prepared by using dextran sulphate and chitosan. The developed nanoparticles were characterized by Dynamic Light Scattering measurements (DLS), Scanning Electron Microscopy (SEM), Atomic Force Microscopy (AFM), Fourier Transform Infrared Spectroscopy (FT-IR), X-ray Diffraction (XRD) and Differential Thermal Analysis (DTA). The prepared system showed an average size of 200–220nm with a zeta potential value of −30mV and showed ∼74% drug entrapment efficiency. In vitro drug release studies showed a controlled and pH dependent curcumin release over a period of one week. The cytocompatibility of bare nanoparticles was verified by MTT assay; cellular internalisation of curcumin loaded nanoparticles was confirmed by fluorescent imaging and quantified spectrophotometrically, anticancer activity of curcumin loaded …