The niclel nanoparticles were prepared via polyol process with hydrazine hydrate as reductant, the optimum conditions were investigated and proposed to be the molar ratio of NiCl2: NaOH: Hydrazine hydrate =1: 2: 11, 60 °C, pH5.5. The qualified fluorescent-magnetic dual functional CdTe/Ni nanoparticles were synthesized via layer-by-layer (LBL) technique, Ni was designed to be magnetic core and CdTe was used as fluorescent shell material, the molar ratio of CdTe:Ni is 4.5:1. The morphology of the Ni nano particles and CdTe/Ni core shell dual functional nano particles were characterized by transmission electron microscopy (TEM), and optical properties were investigated with fluorescence spectrum (FS) and ultra violet spectrum (UV). The synthesized CdTe/Ni nanoparticles showed yellow fluorescence when excited at 365nm, CdTe/Ni magnetic core shell QDs can be simply precipitated with a common magnet. TEM data indicated that ~15nm of Ni nanoparticles were obtained and ~25nm of CdTe/Ni core shell dual functional nanoparticles were prepared. Red shift of maximum absorbance peak was detected via UV, and these results inferred the QDs growth, moreover, 40nm red shift of maximum emission wavelength from 530nm to 570nm was observed, and which showed the growth QDs and formation of CdTe shell. The prepared magnetic core shell CdTe/Ni nanoparticles showed excellent optical properties, and it is expected to be useful and helpful in DNA sensing based on fluorescence resonance energy transfer, biological separating, and DNA labeling process.