A substantial amount of work has been carried out in the area of nanoc
omposite materials for optical applications. Composites are typically
constructed by embedding an optically functional phase into a processa
ble, transparent matrix material. By doing so, the optical properties
can be utilized in more technologically important forms such as films
and fibers. This review covers many areas of optical composite researc
h to date. Composites with second- and third-order nonlinearities and
laser amplification properties are discussed with examples from the re
cent literature. Other composites, including transparent magnets, may
be made using similar structures. The principles used to construct the
se composites may have important technological applications soon and a
re therefore summarized in this review.