Nanostructured ceria/polyaniline core shell particles were synthesized via polymerization of aniline monomers with the cerium oxide nanoparticles. Cerium oxide nanoparticles were prepared by hydroxide-medicated treatment and the shell was formed by polymerization of aniline hydrochloride with ammonium peroxydisulphate. Structural and optical characteristics of the prepared nanocomposites were studied separately for cerium oxide, polyaniline and core-shell ceria-polyaniline. The UV-Vis absorption spectra of the CeO2-PANI confirmed the formation of the core-shell nanostructure. The optical properties of nanocomposites obtained from this method were analyzed as a function of preparation condition and the same has been reported.