Capecitabine is an orally-administered chemotherapeutic agent used in the treatment of advanced stage of colorectal cancers (CRC). The present research was to design and development of tumor targeted capecitabine loaded nanoparticles for CRC targeting to enhance bioavailability, reduce dose, minimize side effect, and sustain drug release for 48 hrs. Nanoparticle (NPs) tumor-targeted treatment is a major area of biomedical research. Capecitabine loaded nanoparticles were prepared by Ionotropic gelation method were prepared with different ratios of Capecitabine and Chitosan-tripolyphosphate . It was employed in formulating and optimizing the nanoparticles to maximize entrapment efficiency and minimize particle size. The optimized nanoparticles were coated with polymer and were evaluated. Fourier transform infrared spectroscopy study revealed the compatibility of drug with excipients while differential scanning calorimetry study confirmed the complete drug entrapment in polymer matrix and scanning electron microscopy revealed spherical shape of nanoparticles. The release profile of capecitabine from chitosan nanoparticles was found to be pH dependent. In-vitro dissolution studies of polymer coated nanoparticles revealed negligible released in simulated gastric as well as intestinal fluid, followed by 94.4% released in simulated intestinal fluid (phosphate buffer pH 7.4) in 48 hrs. The optimized nanoparticles showed colon specific controlled release properties, and thus could be effective for CRC treatment.