Nanocomposite materials on the basis of semiconductor nanoparticles such as CdS are special interest for use in many fields of a science and technique: optics, electrochemistry and optoelectronics. Non-linear optical properties of the composite materials depend on a size, a shape and features of synthesis methods. The sample was investigated is a film of 0.3 mm thickness. The size of nanoparticles (2.5 nm) was characterized by method of X-ray powder diffraction. The green luminescence in 529 nm range is due to the radiative recombination of electron-hole pairs. The red luminescence in 640 nm range is due to the radiative recombination of the exciton trapped in the nanocomposite defect states. We observed the generation of the second harmonic in the range of 400 nm by pumping 790 nm laser pulses. The luminescence intensity I in the range of 400 nm and 529 nm as a function of the excitation density energy P are correspond to the function I ~ Pn. For the band at 529 nm range n =3 that correspond two- (400 nm) and three- (267 nm) at 800 nm excitation.© (2010) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.