Synthesis of undoped and Mn doped ZnO nanoparticles by an inclusive co precipitation method and in situ capping with heteromultifunctional organic stabilizer mercaptosuccinic acid (MSA) in a core shell structure, in highly alkaline aqueous matrix have been accomplished. Near room temperature synthesis resulted in high quality monophasic wurtzite hexagonal structure of rod shaped nanoparticles of bare ZnO: Mn with no signature of dopant as separate phase. MSA capping resulted in nanoball like formation. Thermo gravimetric analysis (TGA) and FTIR confirmed MSA capping. ZnO: Mn particles emit in orange and red when excited by UV and blue light. Surface modification makes the nanoparticles hydrophilic with active organic surface easy for bioconjugation with any ligand and can have applications in drug delivery or as nanoscale fluorescent probe in a biological system. (C) 2010 Elsevier B.V. All rights reserved.