The spherical anatase TiO2 nanoparticle of 50 nm in diameter was manufactured by flame method and was subsequently heat-treated to investigate the transformation behavior from anatase to rutile using TEM observation. The anatase particle was facetted at the free surface and a neck formed between the anatase particles prior to the phase transformation. This resulted in the severe lattice distortion at the region of the interface. Unfortunately, we could not find the rutile grain nucleated in the anatase particle due to very fast grain growth. All the phase boundaries observed in HRTEM images existed in the contact between anatase and rutile particles. The nucleation of rutile phase in anatase particle was suppressed at the low heat-treated temperature but the grain growth of rutile particles after the phase transformation grew very fast by the sweeping phenomena of grain boundary. It leaded to the microstructure without the rutile phase traped in anatase particle.