The mechanism of formation of composite cadmium sulfide and zinc sulfide ultrafine particles (Cd1-xZnxS) by simultaneous precipitation of cadmium sulfide and zinc sulfide in sodium bis-(2-ethylhexyl) sulfosuccinate (AOT)/isooctane reverse micelles has been studied. The particle formation process was followed by the change in UV-visible absorption spectra. The effects of the reactant concentration, the molar ratio of cadmium to zinc ions, and the water content on the particle formation process were investigated. The resultant particles were richer in CdS than the feed composition of the cadmium to zinc ions in the reaction solution. The particle composition was found to be controlled by the solubility of the CdS and ZnS ultrafine particles. The particle coagulation process was analyzed on the basis of a statistical distribution of particles among the reverse micelles. The coagulation rate constant was controlled by the composition and the size of the particles and by the size of the reverse micelles.