Nanocomposites are a new class of polymeric materials which include organic or inorganic nano‐phase materials. These nanocomposite films can show interesting properties which have many applications for wavelength conversion and energy saving. In this paper, we present polyolefin based nanocomposite films prepared using wavelength‐converting red ‘phosphors’ such as Y₂O₃: Eu³⁺ and LiAl₅O₈:Fe³⁺ and blue ‘phosphor’ CaMgSi₂O₆: Eu²⁺. The durability of the polymer chain is unaffected by incorporation of inorganic nanoparticles as there is no direct interaction between them. The addition of surfactant in the nanocomposite film helps to improve the dispersion ability of the nanoparticles and increase the flexibility of the polymer film. Wavelength‐converting ‘nanophosphors’ incorporated in a polymer matrix help to increase the tensile strength of the film. The films show excellent wavelength conversion ability of UV light into the visible and near IR range. These nanocomposite films have great application in energy saving devices. Copyright © 2012 Society of Chemical Industry