Here, we report synthesis and in situ passivation of aluminum nanoparticles using thermal plasma reactor. Both air and palmitc acid passivation was carried out during the synthesis in the thermal plasma reactor. The passivated nanoparticles have been characterized for their structural and morphological properties using X-ray diffraction (XRD) and transmission electron microscopy (TEM) techniques. In order to understand nature of passivation vibrational spectroscopic analysis have been carried out. The enhancement in active aluminum content and shelf life for a palmitic acid passivated nano-aluminum particles in comparison to the air passivated samples and commercially available nano Al powder (ALEX) has been observed. Thermo-gravimetric analysis was used to estimate active aluminum content of all the samples under investigation. In addition cerimetric back titration method was also used to estimate AAC and the shelf life of passivated aluminum particles. Structural, microstructural and thermogravomateric analysis of four year aged passivated sample also depicts effectiveness of palmitic acid passivation. (C) 2016 Elsevier B.V. All rights reserved.