Nanocrystalline TiO2 was prepared by means of a stearic acid gel method. The product was investigated by differential thermal analysis, thermogravimetric analysis, X-ray powder diffraction and transmission electronic microscopy(TEM). The results of the dielectric properties tested indicate that the dielectric constant of anatase-form nanocrystalline TiO2 is much higher than that of the coarse crystal. The dielectric constant of the nanocrystalline material is not related with the amplitude of an external AC field in a certain range.