Sophorolipids are a class of glycolipids that can be obtained from fatty acids by simply treating them with yeast cells (Candida bombicola, ATCC 22214) and glucose. In this letter, we demonstrate the application of sophorolipids obtained from oleic acid as a capping agent for Co nanoparticles. Upon capping the nanoparticle surface, the sugar moiety of these sophorolipids is exposed to the solvent environment, making the nanoparticles stable and water-redispersible.