Nanocrystalline TiO2 was synthesized using the microwave plasma technique and characterized using X-ray diffraction, transmission electron microscopy, scanning electron microscopy, laser particle size analyzer, UV-vis spectroscopy and BET surface area analyzer. The synthesized TiO2 powder crystallized in anatase phase and the crystallite sizes were in nanometers. The photocatalytic activity of the compound was determined and compared against the activity of the commercial Degussa P-25 TiO2 catalyst. The degradation rates of the dyes were found to be higher over the synthesized TiO2 as compared to that over commercial Degussa P-25 TiO2.