Tungsten being a transition element, forms oxide compounds of various oxidation states that enables it to form nanocolloids of tungsten oxide dihydrate. Multiple methods have been used in recent years to synthesize nano tungsten oxide dihydrate, including sol-gel synthesis, electrochemical deposition, hydrothermal synthesis and anodization. However, a universally accepted synthesis method for this material is not offered. The most appropriate method and its corresponding processing parameters for the synthesis of nano tungsten oxide dihydrate colloids were presented in the present study. The objective of the present study was to investigate the effect of processing parameters, i.e. applied voltage, temperature and anodizing duration on the particle size of nanocolloids. It is found that anodization is the easiest, efficient, and cost-effective method to synthesize the colloidal solution of nano tungsten oxide dihydrate. Conducting the synthesis at room temperature at a voltage of 50 V for 60 minutes yields the product with particle size of 40 – 60 nm, which can be used in wide array of applications. This paper also highlights the research gaps for future work and gives recommendations to extend this study particularly for the industrial application of tungsten oxide.