This paper presents in situ preparation of CdSe nanoparticles using poly(vinyl alcohol) [PVA] and polymethylmethacrylate [PMMA] as matrices by use of organoselenium compound. Reaction of cadmium metal salt and 1,2,3-selenadiazole (the source of selenium) enabled formation of CdSe nanoparticles. Use of selenadiazole in the present work with polymer is first of its kind. The radical polymerization of methycrylate monomer with benzoyl peroxide followed by reaction of respective reagents have been successfully employed to synthesize CdSe/PMMA nanocomposite. Similarly, reaction between selenadiazole and cadmium metal salt in aq. PVA yielded polymer coated or mixed CdSe nanoparticies. The UV-vis absorption spectra showed blue shift of about 200 nm with respect to band-gap energy of bulk CdSe, due to size quantization effect in CdSe particles. An emission band was observed at 530 nm in photoluminescence spectrum (PL) of CdSe/PMMA. IR spectra indicated shifts in the values of the polymer functional group due to nanoparticles. X-ray measurement of CdSe/Polymer nanocomposites showed broad pattern for cubic CdSe and particle size of CdSe was estimated to be < 10 nm. TGA revealed gradual weight loss between 200 and 400 degrees C indicating increased thermal stability of the polymer. (c) 2005 Elsevier B.V. All rights reserved.