A modified inverse microemulsion technique was used to synthesize coated Ag2S/CdS nanocomposites of similar to 10 nm in diameter, Their nonlinear absorption was observed with picosecond and nanosecond laser radiation of 532-nm wavelength. The nonlinear absorption in the Ag2S/CdS nanocomposites was enhanced, in comparison with the CdS nanoparticles, due to free-carrier absorption, In addition, the relaxation times of photoexcited free carriers in the Ag2S/CdS nanocomposites were also determined to be a few nanoseconds.