PVA/CdS nanocomposites with varying amounts of CdS NPs in PVA were synthesized and subjected to UV irradiation. An absorption peak around 450 nm indicates the presence of CdS NPs in PVA. UV irradiation causes red shift in wavelength in absorption spectra, suggesting an increase in particle size after UV exposure. A decrease in transmittance of PVA after embedding NPs and further with UV exposure suggests that these can be used for UV-blocking devices. The band gap of PVA decreased with an increase in NPs and UV exposure time. An increase in the refractive index of PVA after embedding CdS NPs was observed, further increasing with increasing concentration of NPs and with increase of UV exposure. Structural induced changes in PVA after embedding NPs and with UV exposure were analyzed by Fourier transform infra-red spectroscopy. Field-emission scanning electron microscopy and energy-dispersive spectroscopy analysis confirmed the presence and distribution of NPs. Photoluminescence spectrum exhibits quantum confinement effect of CdS NPs embedded in polymer matrix. The thermal nature of nanocomposite films was investigated by DSC and TG. Dependence of electrical parameters on concentration of NPs and UV exposure time were studied and explained on the basis of formation charge-transfer complexes inside matrix.