Gold nanoparticles with an average diameter of similar to 20 nm were prepared in an aqueous solution by a wet chemistry method. The parent gold nanoparticles were then capped with a 4-aminothiophenol protecting layer and transferred into toluene by tuning the surface charge of the modified nanoparticles. Gold nanoparticles before and after phase transfer were subjected to photofragmentation by a pulsed 532 nm laser. The effects of solvent properties and surface chemistry on the photofragmentation of the gold nanoparticles have been investigated. Fast photofragmentation has been observed in the organic solvent in which the dielectric constant, heat capacity, and thermal conductivity are lower. The results suggest new approaches for the preparation of very small gold clusters from gold nanoparticles.