Raloxifene loaded gellan gum nanoparticles were prepared using emulsion cross linking method.  A central composite design was applied to optimize the concentration of gellan gum, di-octyl sodium sulfosuccinate (AOT) and raloxifene to obtain an optimum formulation of gellan gum-raloxifene nanoparticles. The percentage of encapsulation, particle size and zetapotential were taken as response variables. A second order polynomial equation obtained from the regression analysis of the data was used to find the optimum level of the variables. The optimum concentrations were found to be gellan gum 1.31%, w/v, AOT 9.88%, w/v, raloxifene HCl (Drug) 1.08%, w/v. The optimized nanoparticle preparation showed 97% encapsulation, 256 nm particle size and zetapotential of -49 mV.