The aim of this research was to synthesize magnesium oxide nanoparticles and to use them as cure activator for polychloroprene rubber (CR). The effects of counterions of magnesium salts on the homogeneous phase precipitation reaction to control size, monodispersity, crystallinity, and morphology of Mg(OH)2 nanoparticles were also investigated. Magnesium oxide nanoparticles were synthesized by optimizing the calcination temperature of Mg(OH)2 nanoparticles. Finally, the MgO nanoparticles were dispersed in polychloroprene rubber (CR) solution along with zinc oxide (ZnO) powder. The influence of MgO nanoparticles on the mechanical, dynamic mechanical and thermal properties of the resulting nanocomposites was quantified. The modulus and strength of ZnO-cured polychloroprene rubber with 4% MgO nanoparticles appeared to be superior to those with ZnO particles or ZnO with rubber grade MgO particles. These composites were further characterized by transmission electron microscopy and infrared spectroscopy in order to understand the morphology of the resulting system and the load transfer mechanism.