With the polymer encapsulation of quantum dots via seeded emulsion polymerization we present a powerful tool for the preparation of fluorescent nanoparticles with an extraordinary stability in aqueous solution. The method of the seeded emulsion polymerization allows a straightforward and simple in situ functionalization of the polymer shell under preserving the optical properties of the quantum dots. These requirements are inevitable for the application of semiconductor nanoparticles as markers for biomedical applications. Polymer encapsulated quantum dots have shown only a marginal loss of quantum yields when they were exposed to copper(II)-ions. Under normal conditions the quantum dots were totally quenched in presence of copper(II)-ions. Furthermore, a broad range of in situ functionalized polymer-coated quantum dots were obtained by addition of functional monomers or surfactants like fluorescent dye molecules, antibodies or specific DNA aptamers. Furthermore the emulsion polymerization can be used to prepare multifunctional hybrid systems, combining different nanoparticles within one construct without any adverse effect of the properties of the starting materials.