Toward the construction of double stranded DNA-based biosensors, packing of thiolated double-stranded DNA adsorbed on gold nanoparticles was observed to induce DNA denaturation. The denaturation was investigated as a function of DNA density, nanoparticle surface area, and DNA length. Direct correlation was found between DNA surface coverage and the denaturation. Denaturation occurred only at high densities of adsorbed DNA and was dependent on DNA length and therefore stability, providing guidelines for controlled adsorption of dsDNA on GNPs. Our results invoke a model in which the formation of a thiol-gold bond competes with the free energy associated with the denaturation of two DNA strands. Denaturation vacates space for additional molecules to bind through a thiol-gold bond.