Colloidal solutions of crystalline PbSe nanoparticles have been synthesized by hot solution chemical process using PbO in oleic acid and tributylphosphine (TBP) bonded selenium. The use of TBP as a capping agent along with oleic acid gives a very good yield (around 10% at 180 ${^{circ}C}$) with an average diameter of particle of about < 6.6 nm. The effects of temperature on size and production yield of PbSe quantum dots are studied. Xray diffraction (XRD), high-resolution transmission electron microscopy (HRTEM) and UV/VIS/NIR absorption spectroscopy were used to characterize the samples.