Schottky diodes of structure Au/nano-CdS/CBD-CdS/SnO2 were fabricated with the nanocrystalline CdS layer deposited by the high pressure magnetron sputtering technique. The devices were characterized by current-voltage (I-V) and capacitance-voltage (C-V) measurements. It was observed that the presence of a large amount of surface states might explain the high values of n in the nano-devices. The quantization effects of the active nano-CdS layer in the devices was confirmed from the observed peaks in the plot of conductance versus reverse bias voltage.