Alumina nanoparticles (60-70 nm) were prepared by the sol-gel technique using citric acid and aluminum nitrate. Casting technique was used to make nanocomposites of unsaturated polyester (UPR) and nano alumina. Transmission Electron Microscopy (TEM) study demonstrated that nano alumina particles were dispersed uniformly in the UPR matrix and agglomeration of particles was found at higher filler loading (> 5 wt%). The nanocomposites show higher tensile, flexural and impact strength than pristine UPR. Scanning Electron Microscopy (SEM) of the fractured surface of tensile test samples show that the ductile fracture of UPR was converted to brittle fracture with the addition of nano alumina. Dynamic Mechanical Analysis (DMA) studies showed the storage modulus increased up to 5 wt% loading of nano alumina. The impact strength and storage modulus results agree well. The thermogravimetric studies revealed that the nanocomposites were having higher thermal stability than the pure UPR. As the concentration of the nano alumina in the UP resin increased, the char yield was also increased.