The aim of the present work was to prepare and characterize biopolymer nanocarriers and evaluate their suitability in possible oral delivery of insulin. The egg albumin biopolymer was used to prepare nanoparticles which were further characterized by Fourier transformed Infrared spectroscopy (FTIR), transmission electron microscopy (TEM), scanning electron microscopy (SEM), zeta potential, Dynamic Light scattering (DLS) and cytotoxicity. From the characterization studies the size of the nanoparticles was found to lie in the range 20-80 nm with surface charge of -23 mV and also offering extremely fair biocompatible. The in-vitro biocompatibility of the prepared nanocarriers was judged by BSA adsorption test and hemolysis assay. The in vitro release kinetics of the insulin loaded nanoparticles was studied in phosphate buffer saline (PBS) solution, and the influence of various factors such as pH, temperature and simulated physiological fluids was studied on the controlled release of insulin.