A novel route to the synthesis of polymer-coated silver nanoparticles (NPs) was developed on the basis of the reduction of Tollens' reagent using mercaptosuccinic acid/poly(ethylene glycol) (MSA/PEG) copolymer as reducing agent and stabilizer simultaneously. The average size of the polymer-coated silver NPs could be controlled in a wide range from 10 to 120 nm by changing the MSA/PEG molar ratio. These surface-coated silver NPs can be uniformly dispersed in polar solvent and a homogeneous silver NPs/acetone dispersion has been prepared. Silver-epoxy nanocomposites have been developed by incorporating these silver NPs into epoxy. The nanocomposites with silver volume content of 25% showed a more than 3000% increase in dielectric constant as compared to neat matrix and a relatively low dielectric loss below 0.05, which meets the main requirement for embedded decoupling capacitors. Moreover, thermal properties of the silver-epoxy nanocomposites were also characterized by thermogravimetric analysis (TGA) and dynamic mechanical thermal analysis (DMTA). The initial decomposition temperature and glass transition temperature were elevated with the increase of silver content, which exhibit great thermal stability and facilitate electrical applications requiring higher heat-resistance. (C) 2012 Elsevier B.V. All rights reserved.