Fine $La_{2/3}Ca_{1/3}MnO_3$ nanocrystalline powders have been successfully prepared by modified citrate pyrolysis process. The obtained LCMO nanoscale grains have a mean particle size of about 30 nm under optimal treatment conditions. The particle size can be controlled by adjusting processing parameters, such as treatment temperature and calcination time. X-ray diffraction, SEM and magnetoresistance effect were employed to study the crystal structure, morphology and magnetic property of these nanosized powders. A novel MR effect (MR > 45% (0 K < T < 340 K)) at room temperature has been found.