In this study, the synthesis of nickel nanoparticles and copper nanospheres for the potential applications of MLCC electrode materials has been studied by plasma arc evaporation method. The change in the broad distribution of the size of nickel and copper nanopowders is successfully controlled by manifesting proper mixture of gas ambiance for plasma generation in the size range of 20 to 200 nm in diameter. The factors affecting the mean diameter of the nanopowder was studied by changing the composition of reactive gases, indicating that nitrogen enhances the formation of larger particles compared to hydrogen gas. The morphologies and particle sizes of the metal nanoparticles were observed by SEM, and ultrathin oxide layers on the powder surface generated during passivation step have been confirmed using TEM. The metallic FCC structure of the nanoparticles was confirmed using powder X-ray diffraction method.