Water-soluble CdTe nanoparticles were synthesized in aqueous Solution with the assistance of mercaptoacetic acid (MAA) molecules by wet chemical route and microwave-assisted method. A series of cadmium telluride (CdTe) nanoparticles capped with a bifunctional molecule, which contains both thiols and carboxylic acid groups were prepared using different pH Values and using potassium tellurite as tellurium source. Thiol-capped nanocrystals of CdTe call be isolated as powders using 2-propanol. The synthesized thiol-capped CdTe were characterized with EDAX, TEM, Raman, FT-IR, UV-Visible absorption, fluorescence spectroscopy and X-ray diffraction (XRD) for the particle size determination and to understand their optical properties. The particles crystallize predominantly in cubic phase with narrow photoluminescence emission. Potassium tellurite as source of tellurium improves the photoluminescence efficiency and also avoids the Cumbersome processes associated with H(2)Te or NaHTe Sources. (C) 2009 Elsevier B.V. All rights reserved.