In situ high-resolution transmission electron microscopy (HRTEM) was used to investigate the effect of heating on an organo-Ge polymer/nanoparticle composite material containing 4-8 nmdiameter alkyl-terminated Ge nanoparticles. The product was obtained from the reduction of GeCl4 with Na(naphthalide) with subsequent capping of the -Cl surface with n-butyl Grignard reagent. The in situ HRTEM micrographs show that the product undergoes significant changes upon heating from room temperature to 600 C. Two pronounced effects were observed: (i) Ge nanoparticles coalesce and remain crystalline throughout the entire temperature range, and (ii) the organo-Ge polymer acts as a source for the in situ formation of additional Ge nanoparticles. The in situ-formed Ge nanoparticles are approximately 2-3 nm in diameter. These in situ-formed nanoparticles (2-3 nm) are so dense that, together with the original ones, they build up an almost continuous crystalline film in the temperatures between 300 and 500 C. Above 480 C, melting of the in situ formed Ge nanoparticles (2-3 nm) is observed, while nanoparticles greater than 5 nm remain crystalline. After cooling to room temperature, the 2-3 nm Ge nanoparticles recrystallized.