Synthesis of nanoparticles of cadmium selenide (CdSe) was carried out using solvothermal method with cadmium nitrate and sodium selenite as precursors. Hydrazine hydrate and ethylenediamine tetra acetic acid were used as the capping agent to control the size of the nanoparticles. As their size decreases to their Bohr radius (usually around a few nanometers), all electronic properties change, and equally important, become dependent on size. In this size, a semiconductor nanoparticle transition occurs in which the electrons and holes are confined beyond their natural Bohr radius. The properties become dependent not only on size, but also on shape. The crystalline nature and particle size of the samples were characterized by Powder X-ray diffraction analysis (XRD). The morphology of prepared CdSe nanoparticles was studied by scanning electron microscope. Dielectric studies were carried out for the pelletized sample of CdSe nanoparticles. The ac conductivity of CdSe nanoparticle has been studied. The obtained results are discussed.