By using Aloe vera leaf extract as both reducing and stabilizing agent, spherical and small size gold nanoparticles were successfully synthesized. The method is a simple, straightforward and eco-friendly approach because of absence of toxic reagent and the neutral pH conditions. The performance and characterization of synthesized gold nanoparticles were examined by UV-visible absorption spectroscopy (UV-vis), dynamic light scattering (DLS), Scanning electron microscope (SEM), transmission electron microscopy (TEM), Fourier transform infrared (FT-IR) and powder X-ray diffraction (XRD). The change of color and the absorbance peak in UV-vis spectroscopy indicated the formation of gold nanoparticles. The XRD showed that the particles were highly crystalline in nature. The TEM and SEM illustrated the particles were spherical in shape a narrowly distribution from 20 nm to 60 nm. The FT-IR proved that the gold nanoparticles were capped with extracts, keeping them from agglomeration and oxidation. The effect of reaction temperature, amount of chloroauric acid solution and extracts was also studied. The results display that these parameters play important roles in the generation of gold nanoparticles.