In the present investigation, main emphasis has been given to synthesize AlO-CeO nanocomposites by a Sol-Gel method based on polymeric network of polyvinyl alcohol (PVA). The idea behind sol-gel synthesis is to “dissolve” the compound in a liquid in order to bring it back as a solid in a controlled manner. In this method mixture solvent of 50:50 ethanol-water was used to dissolve aluminium nitrate, cerium nitrate and PVA. The mixture was heated to 80° C to form homogeneous gel. The hard gel was calcined at a temperature of 600° C for 4 hour and 8 hour and finally converted into nanocomposites. The prepared nanocomposites have been characterized using X-ray Diffraction (XRD), Scanning Electron Microscopy (SEM), UV-VIS. and Fourier Transformation Infrared Spectroscopy (FTIR). The size of nanocomposites heated at 600° C for 4 hour and 8 hour using Scherrer formula comes out to be 5.4 nm and 8 nm respectively. Infrared spectroscopy is also used to determine presence of various functional groups. SEM revealed the polycrystalline structure of the nanocomposite.