The research presented has been focused on understanding the surface effects on the optical and electronic properties of some metallic and semiconductor nanomaterials. When the particle sizes are on the nanometer length scale, a large fraction of atoms in the particles are on the surface. The bonding of the surface atoms being unsaturated could cause trapping and introduce defects that interact with the excited electrons. The effect of the surface on the optical and electronic properties of some semiconductor and metallic nanoparticles is investigated. When the size and shape of nanomaterials change, both the electron density of the excited electrons on the surface and the electronic structure change. Therefore, it becomes important to understand how these changes affect the electronic motion in the particles in order to exploit their full potential in a variety of applications. Semiconductor nanoparticles studied include cadmium selenide (CdSe) and cadmium sulfide (CdS). Effect of changing CdSe shape and size on optical and electronic properties has been investigated and the ability for the CdS nanoparticles to show optical gain (stimulated emission) in solution at room temperature is reported. Effect of surface phonon contribution on the exited electron relaxation in copper nanoparticles is investigated. For the particles size smaller than the mean free path of the electrons in the metal, electron-surface phonon coupling becomes an important factor (contribution) for hot electron relaxation. In the thesis presented, it is shown for the first time the size depended electronic relaxation in copper nanoparticles. Fluorescence due to surface plasmon field enhancement is observed for copper nanoparticles to be million times stronger than the fluorescence observed from bulk copper.