System of polyethylene oxide (PEO) and PEO incorporated with 2.5 and 5 wt% of cadmium sulphide (CdS) nanoparticles were synthesized by simple trend chemical techniques and casting method. Characterization and investigation of the samples has been done by different techniques such as: X-ray, UV-visible, photoluminescence (PL) and Transmission Electron Microscope (TEM) techniques. The change of the structural has been interpreted in terms of the structural modifications of the PEO polymeric matrices. The physical properties of nanoparticles were found to relate the size. The crystallite sizes of cadmium sulphide crystals were estimated from the peaks of the X-ray diffraction (XRD) and TEM tools. The average particle size found by TEM is 44 nm. The absorption spectra showed absorption edge at 448 nm for all the samples. The particle size was estimated by theory and was found to be nearly the same as that obtained by TEM. The optical properties of the samples were estimated by photoluminescence and UV visible spectroscopy.