Using of nano-inclusion to reinforce polymeric materials has emerged as a potential technique to achieve an upper extreme of specific strength. Despite the significant improvement of mechanical properties via nano-reinforcements, the commercial application of such nano-composites is still restricted, due to high cost and unwanted aggregation of nanoparticles in the polymer matrix. To address these issues, here we proposed a scalable and economical synthesis of TiO₂ at low temperatures, resulting in self-dispersed nanoparticles, without any surfactant. As lower energy is consumed in the synthesis and processing of such nanoparticles, so their facile gram-scale synthesis is possible. The defect-rich surface of such nanoparticles accommodates excessive dangling bonds, serving as a center for the functional groups on the surface. Functional surface enables high dispersion stability of room temperature synthesized TiO₂ particles. With this motivation, we optimized the processing conditions and concentration of as-synthesized nano-particles for better mechanical properties of unsaturated polyester (UP) resin. The composite structure (UP-TiO₂) showed nearly two folds higher tensile, flexural, and impact strength, with 4% content of nanoparticles. Characterization tools show that these better mechanical properties are attributed to a strong interface and superior dispersion of nanoparticles, which facilitate better stress distribution in the composite structure. In addition, the crack generation and propagation are restricted at a much smaller scale in nanocomposites, therefore significant improvement in mechanical properties was observed.