Abstract. This chapter broadly describes the formation, basic microstructure, and fundamental optoelectronic properties of nanocomposites synthesized by ion implantation. It is not meant as a complete literature survey and by no means includes all references on a subject that has seen a considerable amount of research effort in the past 15 years. However, it should be a good starting point for those new to the field and in a concise way summarize the main lines of research by discussing the optical, magnetic, and "smart" properties of these nanoparticles and the dependence of these properties on the overall microstructure. The chapter concludes with an outlook for the future.