Nanocrystals (50-250 nm) of a Palladium complex within a polyisobutylmethacrylate matrix were prepared by a phase separation method. In these dispersions, a light-induced birefringence with Deltan approximately 10(-3) was induced, without the application of an electric field. This effect was related to the photoconducting properties of the dispersion. Evidence for charge photogeneration without any applied field was obtained. The photorefractive behaviour of the material confirmed that the nanocrystals reorientation is a consequence of photoconducting properties. A light-generated electric field approximaely E 3 V/microm was estimated. These results illustrate the potential of materials with a nano-crystalline dispersion morphology as light-responsive media.