The present study investigates the properties of mechanically compacted pellets of nanosized lead telluride powders synthesized by using ethylene glycol as solvent and PVP as surfactant. XRD analysis indicates the formation of PbTe nanocrystals which exhibit both cubic and orthorhombic phases. Morphological study reveals that the prepared PbTe nanocrystals have disk-like shape. Electrical analysis reveals that the electrical conductivity of PbTe nanocrystals can be enhanced by the formation of nanodisks. Optical absorption and PL results show a large blue-shift which implies that the prepared PbTe nanodisks show strong quantum confinement effect. The possible formation mechanism of the PbTe nanodisks was also discussed. (C) 2012 The Society of Powder Technology Japan. Published by Elsevier B.V. and The Society of Powder Technology japan. All rights reserved.