Nonlocal nonlinear Schrodinger model is quantised and exactly solved using the canonical framework. It is found that the usual canonical quantisation of the model leads to a theory with pathological inner product. This problem is resolved by constructing another inner product over the vector space of the theory. The resultant theory is found to be identical to that of nonrelativistic bosons with delta function interaction potential, devoid of any nonlocality. The exact eigenstates are found using the Bethe ansatz technique.