Phytosterols are plant analogues for human cholesterol and are being used to control blood cholesterol levels. We report on the preparation of water dispersible phytosterol colloidal particles using antisolvent precipitation method in the presence of surfactants. Various synthesis parameters were tuned, such as surfactant and sterol concentration and antisolvent polarity, and their effect on the resulting particles were investigated. Light scattering measurements, confirmed by electron microscopic observations, were used to determine the morphology of the particles, indicating rod-like structures. A preliminary study on the phase behaviour of concentrated dispersions reveals the existence of a liquid crystal phase that further confirms the rod-like structures of the particles.