Poly(vinyl chloride) (PVC)–cadmium sulfide (CdS) nanocomposite films were successfully synthesized by ex situ solution casting method. Scanning electron microscopy showed that CdS nanoparticles are well monodispersed in the PVC matrix. From the ultraviolet (UV) spectra of nanocomposites, the width of the forbidden band for polymer nanocomposites was determined by extrapolation method. UV-visible optical spectra revealed that the optical band of nanocomposites is increased with increasing concentration of CdS nanoparticles in the PVC matrix. It was found that the band gap is 3.8 eV for PVC-3% CdS nanocomposites, 2.7 eV for PVC-5% CdS, and 2.35 eV for PVC-10% CdS nanocomposites. Photoluminescence spectrum of PVC-CdS-based nanocomposites shows two luminescent peaks at the wavelengths of 436 nm and 472 nm at the luminescence spectrum which belongs to CdS nanoparticles. Photoluminescence study shows that PVC-CdS nanocomposites exhibit a great blue shift (approximately 100 nm) compared with bulk CdS nanoparticles.