The mechanism of the formation of titanium dioxide ultrafine particles in reverse micelles by the hydrolysis of titanium tetrabutoxide (TTB) was studied, using sodium bis(2-ethylhexyl) sulfosuccinate (AOT)/isooctane as a reverse micellar solution. The effects of water, TTB, and surfactant concentrations were investigated. The particle formation process was followed by the change of UV-visible absorption spectra. The conditions for the formation of particles were studied, and the particle formation was found to be controlled by the TTB concentration and the number of micelles. A reaction scheme for the particle formation, based on the number of micelles, was proposed, which successfully explained the data for the combined stages.