This article reports the enhanced dielectric properties of a photodefinable nanocomposite material containing sub–10 nm coated metal nanoparticles (NPs). The surface morphology of the synthesized dodecanethiol-functionalized gold NPs was characterized using the transmission electron microscopy (TEM). We investigated the particle agglomeration and dispersion during the various stages of the nanocomposite synthesis using TEM. Physical properties such as dielectric permittivity and dielectric loss were measured experimentally. The dependence of dielectric permittivity and loss tangent on particle concentration and frequency was studied. Nanocomposite films showed an approximately three times enhancement in average dielectric constant over the polymer base value and an average dielectric loss of 0.09 at 1 kHz, at a filler loading of 10% w/w.