We have successfully deposited nanostructured cadmium selenide (CdSe) inside anodic aluminum oxide (AAO) templates from aqueous electrolyte containing cadmium sulfate, selenium oxide and mercuric chloride by using high frequency alternating current (19 V-rms, 200 Hz). Addition of mercury ions aids in the deposition of CdSe inside anodic oxide pores. Scanning and transmission electron microscopy studies of the deposit etched in phosphoric acid showed the presence of end standing nanostrips. Energy dispersive X-ray analysis of the deposit confirmed the presence of cadmium and selenium in the deposit. X-ray diffraction (XRD) studies of the deposit showed small but broad diffraction peaks consistent with the presence of hexagonal CdSe. Optical studies revealed blue shift in band gap energy due to quantum confinement. (C) 2009 Elsevier B.V. All rights reserved.