Co nanoparticles were prepared by the reverse micelle technique (NaBH₄reduction of cobalt chloride in a reversed micelle solution of didodecyldimethylammoniumbromide (DDAB)/toluene). The size and the shape of Co nanoparticles could be easily controlled by changing the water contents and micelle concentrations, and the solubility of Co nanoparticles was systematically tuned by choosing appropriate surface capping organic ligand molecules. Furthermore, a novel nanofabrication process was clearly demonstrated, which generated oxide over-coated Co nanorods from Co nanoparticles in organic solution by slow oxidation with an external magnetic field.