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Nanocrystalline materials are of interest for a variety of applications. This talk describes the synthesis and functionalization of nanocrystalline and nanocomposite materials for biological applications. Specifically, we have generated metallic, metal oxide, and semiconducting nanocrystals for bioimaging, biolabeling, bioseparation and biosensing applications. These nanocrystals are les 10 nm in size, and are surface modified to provide for high biocompatibility, colloidal stability, water solubility and buffer stability. We have also prepared bifunctional nanocomposite particles in the form of magnetic quantum dots. These materials can be tailored in both fluorescence and magnetic properties by manipulating their composition and particle size.