CdS nanoparticles were confined within titanate nanotubes (TNTs) by an ion-exchange reaction and a subsequent sulfurization process. Prior to the ion-exchange reaction, the exterior surfaces of the TNTs were modified by a silane coupling agent to make CdS nanoparticles selectively deposit on the inner wall. The composites were characterized by high-resolution transmission electron microscopy, powder x-ray diffraction, inductively coupled plasma atomic emission spectrometry, N2 adsorption–desorption and UV–vis absorption spectra. The results confirm that CdS in the range of 2–3 nm in diameter are confined within the inner cavity of the TNTs. CdS confined within TNTs shows a significant blue-shift of the absorption band edge compared with CdS nanoparticles deposited on the exterior surface of TNTs. Also the TNTs-confined CdS composite exhibits enhanced photocatalytic activity and photostability for hydrogen evolution under visible light illumination due to the quantum size effect of CdS as a result of the spatial confinement effect of the TNTs.