Cholesteric liquid crystals (CLCs) are a class of liquid crystals that have wide range of applications in various fields due to their unique electrical and optical properties such as low viscosity, capability to change colour with variation of electric field, temperature and light etc. This chapter describes the effect of dispersion of nanomaterials on the dynamic responses of CLCs for dielectric and optical applications in liquid crystal displays, sensors, smart materials, luminescent displays, UV modulators, dye lasers, UV detectors etc. The addition of nanomaterials in the CLCs alters their dynamic responses in terms of electro-optical behaviours and mark them promising materials for advanced technology applications. Through a comprehensive review of studies of various researchers, this chapter provides a review that the nature, type, size, shape, concentration, dispersion techniques etc. influence the mesogenic behaviour and alignment within the cholesteric liquid crystal (CLC) matrix for enhanced performance for display and non-display applications.