A significant Li uptake in the nanocrystalline AlNbO4 form vis a vis the bulk form was investigated. Micrometer-sized and nanometer-sized samples of AlNbO4 were prepared by the conventional solid state reaction (SSR) and polymerizable complex (PC) method respectively. All the peaks in both the XRD patterns were indexed according to the JCPDS card no. 41-0347. The peaks in the XRD patterns were broad, due to the nanocrystalline nature of the sample and are further broadened by the RT insertion reaction. Shifts in peak positions of the lithiated phases vis a vis the parent phase were not discernible. It was observed that the high theoretical specific capacity of 291 mA h g-1 can be realized in nanocrystalline form.