We report the preparation of nanocrystalline cobalt ferrite, $CoFe_2O_4$ particles and their surface coating with silica layers using micro emulsion method. The cobalt ferrite nanoparticles with the size 7nm are firstly prepared by thermal decomposition method. Hydrophobic nanoparticles were coated with silica using micro-emulsion method with surfactant, $NH_4OH$, and tetraethylorthosilicate (TEOS). Monodispersed and spherical silica coated cobalt ferrite nanoparticles have average particle diameter of 38 nm and narrow sized distribution.