The Aim of the present work was to study the effect of polymer and surfactant concentration on characteristics of nanoparticle formulations. Nanoparticles were prepared by solvent evaporation method. The prepared nanoparticles were characterized by particle size, entrapment efficiency, drug loading. Compatibility study of drug and polymer was carried out by Fourier transform infrared spectroscopy (FTIR). The results of this study showed that the particle size, entrapment efficiency and drug loading were 295.5nm, 79.61% and 36.78% respectively. The drug release from optimized batch was found to be 74.98 % in 10 hrs. In this study Glipizide loaded PLA nanoparticles were prepared successfully and showed promising sustained drug release profile.