This thesis examines the optical properties of nanoscale silicon and the sensitization of Er with Si. In this context, it predominantly investigates the role of defects in limiting the luminescence of Si nanocrystals, and the removal of these defects by hydrogen passivation. The kinetics of the defect passivation process, for both molecular and atomic hydrogen, are studied in detail. Moreover, the optical absorption of Si nanocrystals and the effect of annealing environment (during nanocrystal synthesis) on the luminescence are investigated. The effect of annealing temperature and hydrogen passivation on the coupling (energy transfer) of Si nanocrystals to optically active centres (Er) is also examined. ¶ ...