Pulse Thermal Processing (PTP) using a High Density Infrared (HDI) Plasma Arc Lamp has been investigated as an enabling manufacturing tool for processing nanomaterials and thin-films. HDI is a single source lamp that offers unique capabilities of processing broad areas with power densities approaching those of a laser. The extremely high radiant energies delivered by the plasma arc lamp provides heating rates approaching 600, 000°C/s through a single pulse on a millisecond time frame, thus allowing controlled diffusion on nano-meter scale. The ability to design the functionality of nanomaterials offers tremendous potential to exploit this technology for a wide range of applications based on nanotechnology. This present article discusses application of PTP using high-density plasma arc lamp to perform; a) phase transformation in FePt nanoparticle system for magnetic media applications, and b) crystallization of amorphous Si (a-Si) for photovoltaic and thin-film transistor (TFT) applications.