The purpose of this study is to prepare and evaluate the effect of synthesized titanium dioxide (TiO2) nanoparticles for their biocompatibility on physiological body fluids and the effect of cell toxicity to produce osteointegration when used as implantable materials. For the past few decades, the number of researches done to understand the importance of the biocompatibility of bioceramics, metals, and polymers and their effect on clinical settings of biomedical devices has increased. Hence, the total concept of biocompatibility encourages researchers to actively engage in the investigation of the most compatible materials in living systems by analyzing them using suitable physical, chemical, and biological (bioassay) methods. The ceramic material nano TiO2 was prepared by sol-gel method and analyzed for its functional group and phase formation by Fourier transform infrared spectroscopy and powder X-ray diffraction. Furthermore, the particle size, shape, surface topography, and morphological behavior were analyzed by dynamic light scattering, zeta potential, scanning electron microscopy-energy dispersive X-ray analysis, and transmission electron microscopy analysis. In addition to this, the cytotoxicity and cytocompatibility were determined on MG63 cell lines with varying doses of concentrations such as 1 µg/mL, 10 µg/mL, 25 µg/mL, 50 µg/mL, and 100 µg/mL with different time periods such as 24 hours and 48 hours. The results have not shown any toxicity, whereas, it improved the cell viability/proliferation at various concentrations. Hence, these findings indicate that the nano TiO2 material acts as a good implantable material when used in the biomedical field as a prime surface-modifying agent.