AC-coupled interconnects (ACCI) is a very exciting technology for achieving high-density chip-to-package interconnects while simultaneously providing a simple, mechanically robust interface. The technology combines the stress-relieving ‘underfill’ layer with the dielectric medium for capacitive coupling. For good AC coupling, it is desirable for the underfill material to have a permittivity around 20 at operating frequencies. However, there is a lack of microwave frequency data for high permittivity ceramic-polymer composite systems in the literature. This paper describes the development and microwave frequency characterization of high K nanocomposite underfill. For composite thick film preparation, 200 nm BaTiO3 nano-sized powder and photosensitive epoxy were used. The thermal behavior of composites was evaluated by DSC (differential scanning calorimetry). Dielectric properties were evaluated as a function of ceramic loading and curing temperature. The microwave dielectric properties were measured from 45 MHz up to 26.5 GHz to extract the capacitance and quality factor of the capacitor over the frequencies of interest using floating plate capacitors and T-resonator CPW structures. The permittivity was found to be ∼ 18 up to 14 GHz and the total Q factor of the capacitors was found to be 2 at 26.5 GHz for BaTiO3 (30 vol%)-epoxy composite. Dielectric loss was found to be 0.3 at 3 GHz, which would satisfactorily allow signaling well into the muti-gigabits range. The high K nanocomposite shows higher permittivity compared to materials currently used (air, K=1 or SiO2, K∼3.9) in capacitively coupled interconnects for chip-to-package communications.