Chitin nanocrystals dispersed in water were successfully prepared by 2,2,6,6-tetramethylpiperidine-1-oxyl radical (TEMPO) mediated oxidation of alpha-chitin in water at pH 10 under specific conditions, followed by ultrasonic treatment. When the amount of NaClO added as co-oxidant in the oxidation was 5.0 mmol/g of chitin, the weight percentage of the water-insoluble fraction in the TEMPO-oxidized chitin was 90%, and its carboxylate content reached 0.48 mmol/g. Since the TEMPO-oxidized chitin thus prepared had a crystallinity as high as that of the original alpha-chitin, the C6 carboxylate groups formed by TEMPO-mediated oxidation can be regarded as being present only on the chitin crystallite surfaces. No N-deacetylation occurred on the TEMPO-oxidized chitins. When the TEMPO-oxidized chitin was subjected to ultrasonic treatment in water, mostly individualized chitin nanocrystals were obtained, and the average nanocrystal length and width were 340 and 8 nm, respectively.