Nickel ultrafine powder have been synthesized by chemical reduction of aqueous $NiSO_4$ with hydrazine at various reaction conditions. The effect of reaction conditions such as the amount of surfactant and reductor, and reaction temperature on the particle size and shape was investigated by the mean of XRD, SEM and SEM-PSA. Experiments showed that the ratio of $N_{2}H_4/Ni$ and the reaction temperature were affected on the particle size of the nickel powder. The average particle size of synthesized nickel powder increased with increasing reaction temperature regardless of the ratio of $N_{2}H_4/Ni$. Also the surfactant could influence the size and agglomeration of ultrafine powder with the reaction temperature.