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                                                                      EXHIBIT 23

                         CONSENT OF INDEPENDENT AUDITORS


  We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 333-53445) pertaining to the Nanophase Technologies Corporation
Amended and Restated 1992 Stock Option Plan of our report dated February 23,
1999, with respect to the financial statements and schedule of Nanophase
Technologies Corporation included in this Annual Report (Form 10-K) for the year
ended December 31, 1998.




                                                       /S/ ERNST & YOUNG LLP
                                                       ------------------------
                                                         Ernst & Young LLP




Chicago, Illinois
March 29, 1999