Nanosized β-Cd(OH) 2 were successfully synthesized via simple chemical precipitation method using cadmium nitrate as a precursor in a solution of sodium hydroxide. The CdO nanoparticles were harvested from β-Cd(OH) 2 by thermal decomposition at 400°C. The structural, optical, and magnetic properties of the as prepared and annealed products of β-Cd(OH) 2 were studied. The morphology of the CdO nanocrystals annealed at 400°C analyzed by FE-TEM exhibits pseudo spherical morphology with sizes around 60 nm.