Abstract: The vanadium sesquioxide nanocomposite is useful for applications in thermistors, current switching devices, static charge dissipation devices, and electromagnetic shielding. Vanadium sesquioxide nanoparticles are produced using a sol-gel process that results in a V2O5 gel. The gel is heated in a reducing atmosphere of about 5% H2-95% argon at 850° C. for about four hours. The resulting product is dried at about 50° C. for twenty-four hours to produce V2O3 powder having particles about 23 nm in size. The nanocomposite is prepared by mixing the sesquioxide nanoparticles with epoxy resin and hardener in a centrifuge, casting the mixture in a Teflon mold, heating the mixture at 60° C. for 30 minutes, and curing the product at 150 KN/m2 at 100° C. for two hours. The nanocomposite contains about 80-90 wt % epoxy resin-hardener mixture and about 10-20 wt % vanadium sesquioxide nanoparticles.