Nanosized particles have become the focus of attention of researchers due to their outstanding optical properties as compared to those of bulk materials. The optical properties can be tuned or tailored if these nanocrystals of right materials are grown on a suitable host matrix. In this paper, a novel method of incorporating inorganic/organic crystals in a polymer matrix and the study of their optical properties are presented. By controlling the level of saturation of the solution and the rate of evaporation, an attempt has been made to incorporate nanocrystals in the host polymer. Inorganic material Potassium di-hydrogen phosphate (KDP) has been chosen because of its versatile properties and applications. Polyvinyl alcohol (PVA) is the host matrix since it has good aqueous solubility and exceptional transparency. The prepared samples, thin nanocrystals in a polymer sheet, have been characterised by various spectroscopic techniques such as X-ray diffraction (XRD), UV-vis spectrometer, Fourier Transform Infrared Spectroscopy (FT-IR) and scanning electron microscopy (SEM).