In this study, the preparation of a new kind of magnetic and luminescent Fe3O4/CdTe nanocomposites was demonstrated. Superparamagnetic Fe3O4 nanoparticles were first synthesized by hydrothermal coprecipitation of ferric and ferrous ions, followed by the modification of their surfaces with tetramethylammonium hydroxide (TMAOH) and the chemical activation with aspartic acid. The surface-modified Fe3O4 nanoparticles were then covalently coated with CdTe quantum dots (QDs), which were modified with mercaptoacetic acid (MPA), to form the Fe3O4/CdTe magnetic and luminescent nanocomposites through the coordination of the amino groups on the surfaces of Fe3O4 and the carboxyl groups on CdTe QDs. The structure and properties of as-synthesized nanocomposites were characterized. It was indicated that the nanocomposites possessed structure with an average diameter of 40-50 nm, yellow-green emission feature and room temperature ferro-magnetism. Both the fluorescence and UV-vis absorption spectra of the nanocomposites showed a blue shift comparing with those of CdTe QDs. The mechanism of the blue shift was presented. The nanocomposites retained the ferromagnetic property with a saturation magnetization of 8.9 emu/g.