The effect of fullerene on the radical polymerization of N-vinylpyrrolidone with lauroyl peroxide in toluene was investigated kinetically. C-60 was found to act both as inhibitor and as retarder because the polymerization rate and the molecular weight of resulting poly(vinylpyrrolidone) is decreasing with the increase of the fullerene concentration (0-6.94 x 10(-4) mol l(-1)). The water-soluble poly(vinylpyrrolidone)-modified fullerene C-60 compound was characterized by differential scanning calorimetric, Infrared and Raman spectroscopy, UV absorption and photoluminescence. Based on the results obtained by optical measurements, it is argued that by the covalent attachment of the polymeric radicals to fullerene cage the extended electronic conjugation system of the C-60 is broken leading to the appearance of a polyene structure.