Dendrimers have recently been shown to be excellent templates for synthesizing nanoparticles in view of their unique structural features. The present study, we report on nonlinear absorption and optical limiting properties of dendrimer-embedded silver nanoclusters and their linear and nonlinear optical (NLO) properties. Optical absorption spectroscopy reveals prominent plasmon peaks indicating quantum confinement. Z-scan experiments using pulsed laser excitation within the tail region of Plasmon absorption in the nanosecond regimes reveal evidence of strong nonlinear absorption involving two photo absorption followed by saturation absorption. The third ordered susceptibility (Χ(3)) measured using four wave degenarated four wave mixing tecnquie (FWDM). © 2010 SPIE.