Dumbbell shaped nickel nanoparticles have been synthesized for the first time by laser induced fragmentation of bulk nickel powder in aqueous sodium dodecyl sulfate. The focused output of the third harmonic from a nanosecond pulsed Nd:YAG laser operating at 35 mJ/pulse energy was used for the photo-fragmentation of micron size particles suspended in 50 mM aqueous medium. Nickel anisotropic nanocrystals have been grown by recrystallisation of nickel particles due to laser plasma generated in sodium dodecyl sulfate solution. The Vibrating Sample Magnetometer measurements of dumbbell shaped nickel nanostructure show their good ferromagnetic nature. The mechanism of the synthesis of nanostructure through melting and fragmentation has been also discussed.