The polymer nanocomposite samples have been prepared by solution embedding of CdS nanoparticles in polyurethane (PU). The structural properties have been studied by scanning electron microscopy (SEM) and atomic force microscopy (AFM). SEM and AFM images represent the dispersion of CdS nanoparticles in a polymer matrix. The permittivity of nanocomposite samples increases with temperature due to formation of new dipoles or accumulation of charge carriers in a nanoparticle-polymer interface. The increase in permittivity with temperature can be attributed to the heat-assisted dipole moment. Furthermore, it has been observed that permittivity is the function of nanoparticle concentration, temperature, and frequency. The high concentration of nanoparticles lowers permittivity with frequency. The positive and negative tangential loss has been observed in PU-CdS nanocomposite samples. The