Polycarbonate nanocomposites comprising a polycarbonate matrix having non-oxidized metal nanoparticles dispersed therein are disclosed. The polycarbonate nanocomposite is produced by a process comprising forming a reaction mixture comprising a dihydroxy compound, an activated carbonate, a metal precursor, and a solvent; and in-situ polymerizing the reaction mixture to form a nanocomposite comprising a polycarbonate matrix and metal nanoparticles dispersed therein. The metal precursor comprises a metal selected from a specified group. The nanocomposites have improved mechanical, optical, electrical and/or magnetic properties. Also disclosed are articles formed from such polycarbonate nanocomposites.