New assembly techniques are required for creating advanced materials with enough structural flexibility to be tuned for specific applications, and to be practical, the techniques must be implemented at relatively low cost. Layer-by-layer (LBL) assembly is a simple, versatile, and significantly inexpensive approach by which nanocomponents of different groups can be combined to coat both macroscopically flat and non-planar (e.g., colloidal core-shell particles) surfaces. Compared with other available assembly methods, LBL assembly is simpler and more universal and allows more precise thickness control at the nanoscale. LBL can be used to combine a wide variety of species--including nanoparticles (NPs), nanosheets, and nanowires (NWs)--with polymers, thus merging the properties of each type of material. This versatility has led to recent exceptional growth in the use of LBL-generated nanocomposites. This Account will focus on the materials and biological applications of introducing inorganic nanocrystals into polymer thin films. Combining inorganic NPs and NWs with organic polymers allows researchers to manipulate the unique properties in the nanomaterial. We describe the LBL assembly technique for introducing metallic NPs into polymers in order to generate a material with combined optomechanical properties. Similarly, LBL assembly of highly luminescent semiconductor NPs like HgTe or CdTe with poly(diallyldimethylammonium chloride) (PDDA) was used to create uniform optical-quality coatings made on optical fibers and tube interiors. In addition, LBL assembly with inorganic nanosheets or clay molecules is reported for fabricating films with strong mechanical and ion transport properties, and the technique can also be employed to prepare Au/TiO(2) core/sheath NWs. The LBL approach not only will be useful for assembly of inorganic nanocrystals with various polymers but can be further applied to introduce specific functions. We discuss how the expanded use of NWs and carbon nanotubes (CNTs) in nanocomposite materials holds promise in the design of conductive films and new nanoscale devices (e.g., thin-film transistors). New photonic materials, sensors, and amplifiers can be constructed using multilayer films of NPs and can enable fabrication of hybrid devices. On the biological side, inorganic nanoshells were used as assembly tools with the goal of detecting neurotransmitters (specifically, dopamine) directly inside brain cells. In addition, the stability of different cell lines was tested for fabricating biocompatible films using LBL. NP LBL assembly was also used for homogeneous and competitive fluorescence quenching immunoassay studies for biotin and anti-biotin immunoglobulin molecules. Finally, introduction of biomolecules with inorganic NPs for creating biocompatible surfaces could also lead to new directions in the field of biomedical applications.