Effect of particle size on the electron transport and magnetic properties of La0.7Ca0.3MnO3 has been investigated. While the ferromagnetic Tc, low field magnetic susceptibility, and insulator‐metal transition are markedly affected by the particle size, the maximum magnetoresistance exhibited by the samples near Tc is not sensitive to the particle size. However, the magnetoresistance at 4.2 K increases with decrease in particle size, suggesting a substantial contribution by the grain boundaries. Preliminary measurements on La0.7Sr0.3MnO3 samples of different particle sizes also corroborate the above conclusions.