Cadmium selenide (CdSe) nanoparticles were synthesized through colloidal method in aqueous medium using the reaction intermediates selenium nanorods as selenium source. Trigonal selenium nanorods (t-Se) were synthesized in water by the reduction method in the presence of sodium borohydride at 60 degrees C using sodium selenite (Na2SeO3) as selenium source. These selenium nanorods were further utilized to synthesis cadmium selenide nanoparticles at 100 degrees C in water. The synthesized nanorods and nanoparticles were characterized using XRD, SEM, TEM and XPS analysis. X-ray diffraction (XRD) analysis shown that the nanorods possess trigonal phase while the nanoparticles possess a cubic zinc blende structure. Scanning electron microscope (SEM) analysis of the prepared hexagonal shaped nanorods reveals the diameter of the nanorods are about 150 nm. Transmission electron microscopy (TEM) analysis shows the size of the synthesized CdSe nanoparticles are about 4-8 nm. X-ray photoelectron spectroscopy (XPS) analysis illustrates the presence of respective elements Cd, Se with its corresponding oxidation states. The activity of nano selenium rods in aqueous solution during the conversion of cadmium selenide nanoparticles was discussed.