A major drawback in the application of layered chalcogenide nanoparticles/tubes is their inertness to chemical and biological modification and functionalization. Their potential use in composite materials might be greatly enhanced by improving the chalcogenide/matrix interface bonding. A novel modification strategy for layered chalcogenide nanoparticles based on the chalcophilic affinity of metals and the chelating terpyridine is reported. The terpyridine anchor group can be conjugated to fluorescent tags or hydrophilic/hydrophobic groups that confer solubility in various solvents to the otherwise insoluble chalcogenide nanoparticles. The functionalized particles are characterized using TEM/HRTEM, optical and vibrational spectroscopy, and confocal laser scanning microscopy.