Nanocomposite particles of silver modified CrO 2 were synthesized by a chemical CrO 3 → CrO 2 reduction in the presence of Ag + in an aqueous medium whereby the half-metallic ferromagnetic particles of CrO 2 are generated within a shell of silver. The dielectric constant εr, AC resistivity ρAC, and the dielectric power loss were studied after annealing recovered Ag:CrO 2 powder (compacted as the billets), at 300°C for 2 h in air, at 10–1000 kHz frequencies (f) at room temperature. At 10 kHz, the ρr has as large a value as 49, with ρ AC = 106 k Ω-cm and power loss 0.42. As f increases, all the three parameters are decreased monotonically to the values 28, 3.6 kΩ-cm, and 0.06 respectively. Almost a steady εr as well as ρAC value exists, with controlled power loss, useful for high frequency applications over f ≥ 400 kHz .