Quantum dots have been studied extensively for three decades due to their size dependent optical and electronic properties. A novel class of thermochromic materials including quantum dots is of particular interest due to their potential applications in opto-electronic device technology. The production stages of such a nanocompound include organometallic synthesis, surface modification and dispersion in a nonpolar solvent. The results of optical transmission and temperature dependent time resolved femtosecond photoluminescence (PL) spectroscopies on ionic CdSe quantum dots are used to study size, size dispersion and time constants for PL decay. It will be shown that the band gap energy and PL intensity decrease as the temperature rises and that thermochromicity is reversible for the temperature range up to 100oC. The technological use of thermochromic nanocompounds will be discussed.