Polyvinlypyrrolidone (PVP) capped cadmium sulphide (CdS) nanoparticles are synthesized using a simple hydrothermal method. The powder X-ray diffraction (XRD) result indicates that the nanoparticles are crystallized in hexagonal phase. The optical properties are characterized by Ultraviolet-Visible (UV-Vis) absorption and Photoluminescene (PL) spectra. The transmission electron microscope (TEM) reveals that the nanoparticles of CdS posses well defined morphology and high crystallinity. The d-spacing measured from well resolved lattice fringes of HRTEM ascertains the structure of CdS nanocrystals. The morphology and composition of CdS nanoparticles are investigated using Scanning electron microscope (SEM) and Energy dispersive x-ray analysis (EDAX) respectively. The thermal behavior of the as prepared nanopowder has been studied by Thermo gravimetric analysis (TGA).