A novel homogeneous composite material, consisting of luminescent CdSe/ZnS quantum nanorods, embedded in the nematic liquid crystal 5CB, has been prepared. Liquid crystal cells and free-standing stretched polymer films incorporating this composite material were characterized using polarized micro-photoluminescence and electro-optical measurements under an applied electric field. A liquid crystal induced, macroscopic orientation of the nanorods in a thin layer of the material has been demonstrated. A conventional liquid crystal cell, filled with this composite, exhibits 40% modulation of the nanorod's photoluminescence intensity when subjected to an external electric field. These results indicate that quantum nanorods may have practical applications in photonic devices.