Growth of CdS0.08Se0.92 nanocrystals embedded in glass is studied through the combinative analysis of optical absorption and photoluminescence (PL) spectroscopy at room temperature. The quantum confinement effect is observed in these structures. Average nanocrystal radii are found to be in the range of 2.3-4.2 nm with the help of a quantized state effective mass theory. Photoluminescence spectra are studied by means of the model of Ravindran et al (1999 Nanostruct. Mater. 11 603). The difference between the energies of the deep trap peak and first exciton peak is found to be similar to0.2-0.3 eV. The possible sources of the overall shift in these peaks are also discussed.