High quality poly(methyl methacrylate) (PMMA) thin nanocomposite films doped with different concentration of silver (Ag) nanoparticles are demonstrated. SEM and TEM confirmed the presence of Ag-PMMA nanocomposites with excellent dispersion of Ag nanoparticles into the PMMA matrix and nanoparticles with an average size of 9 nm. By using a direct Laser writing system with a continuous wave 405 nm diode Laser source the films were exposed, allowing the formation of hole-like or linear patterns in the sub 200nm regime, using a 280nm FWHM sized laser spot, demonstrating, for the first time, the potential for sub-diffraction limit laser processing in such 2-material composite systems.