A new methodology for the synthesis and functionalization of nanometer-sized colloidal particles consisting of well-defined, water-soluble, functional polymers with narrow molecular weight distribution (M(w)/M(n) < 1.3) was developed, utilizing atom transfer radical polymerization (ATRP) of water-soluble monomers in an inverse miniemulsion. The optional introduction of a disulfide-functionalized cross-linker allowed for the synthesis of cross-linked (bio)degradable nanogels. Dynamic light scattering (DLS) and atomic force microscopy (AFM) measurements indicated that these particles possessed excellent colloidal stability. ATRP in inverse miniemulsion led to materials with several desirable features. The colloidal particles preserved a high degree of halogen chain-end functionality, which enabled further functionalization. Cross-linked nanogels with a uniformly cross-linked network were prepared. They were degraded to individual polymeric chains with relatively narrow molecular weight distribution (M(w)/M(n) < 1.5) in a reducing environment. Higher colloidal stability, higher swelling ratios, and better controlled degradability indicated that the nanogels prepared by ATRP were superior to their corresponding counterparts prepared by conventional free radical polymerization (RP) in inverse miniemulsion.