Experimental results on synthesis of metal nanoparticles in ORMOCER by ion implantation are presented. Silver ions were implanted into organic/inorganic matrix at an accelerating energy of 30 keV and doses in the range of 0.25 · 10 17 to 0.75 · 10 17 ion/cm 2 . The silver ions form metal nanoparticles, which demonstrate surface plasmon absorption at the wavelength of 425-580 nm. The nonlinear absorption of new composite materials is measured by Z-scan technique using 150 fs laser pulses at 780 nm wavelength. ORMOCER matrix shows two-photon nonlinear absorption, whereas ORMOCER with silver nanoparticles demonstrates saturated absorption. Some optical applications of these composite materials are discussed.Nonlinear optics plays a key role in the implementation and development of many photonics technologies for high-speed optical signal processing. The development of novel nonlinear optical materials with ultrafast time response, high resistance to bulk and surface laser damages, with two-photon and/or saturated absorption, and of course, large optical refractive nonlinearities, is crucial for those technologies. In