Cadmium based oxide and hydroxide nanocomposites material is synthesized by pulsed laser ablation of cadmium metal in the double distilled water. A piece of cadmium metal, placed on the bottom of glass vessel containing double distilled water, was irradiated with 1064 nm of pulsed Nd:YAG laser operating at 35 mJ/pulse energy and 10 ns pulse width for 30 minutes. Colloidal solution of produced Nanoparticles is found stable for two days. Fine white colored powder is obtained after drying centrifuged solution. UV-visible absorption of colloidal solution, XRD, TGA, DTA and FTIR of the powder is used for the characterization of material. Possible mechanism of synthesis and hydroxide to oxide transition is discussed.