In this work we report the phase formation and magnetic properties of CoFe2O4 nanopowder prepared by mechanical alloying technique using metallic cobalt and hematite powder (1:1 molar ratio) as the initial raw material in ambient air atmosphere. The formation of single phase cobalt ferrite of (Co0.182+Fe0.823+)[Co0.822+Fe1.183+]O-4 stoichiometry was confirmed for the samples milled above 15 h without any heat-treatment by XRD and Mssbauer techniques. The average crystallite size of the sample milled for 30 h was similar to 13 nm. The highest room temperature value of the magnetization measured at 1.5 T was 51 e.m.u/g for the sample milled for 25 h which was much lower than the corresponding value of the bulk cobalt ferrite (80.8 e.m.u/g at 300 K) due to the size effect. .