Zinc oxide and cadmium selenide particles in the nanometer size regime have been synthesized using chemical routes. The particles were capped using thioglycerol in case of ZnO and 2-mercaptoethanol in case of CdSe to achieve the stability and avoid the coalescence. Zinc oxide nanoparticles were doped with europium to study their optical properties. A variety of techniques like UV-Vis absorption spectroscopy, X-ray diffraction (XRD), photoluminescence (PL), X-ray photoelectron spectroscopy (XPS), Fourier transform infrared spectroscopy (FT-IR) and transmission electron microscopy (TEM) were used to carry out structural and spectroscopic characterizations of the nanoparticles.