A novel synthesis approach based on a solution route has been developed for the fabrication of nanocrystalline bismuth telluride. The method consists of dissolving both bismuth and tellurium into the same organic solvent with the assistance of complexing agents and one-step coprecipitation of bismuth telluride. The synthesized nanocrystalline bismuth telluride powders possess rhombohedral crystal structure and are nanosheet/nanorod-like with an average size of between 30 and 40 nm. The thermal conductivity of the hot-pressed compact consolidated from the as-synthesized nanopowders is 0.39-0.45 Wm(-1)K(-1) in the temperature range of 323 to 523 K, which is at most one third of that of bulk bismuth telluride-based materials reported in the literature. Such low thermal conductivity of the investigated bismuth telluride is mainly attributed to substantially high concentration of grain boundaries provided by nanostructuring to scatter phonons intensively.