We report the discovery of extremely luminous near-UV continuum emissi
on associated with a bright radio knot in the radio galaxy 3C346 (z=0.
162). Photometric measurements from U and r' band images and longslit
spectra show a spectral energy distribution that steepens at higher fr
equencies, with radio and optical spectral indices alpha(r)=-0.37+/-0.
02 and alpha(o)=-1.8-0.2, respectively. Based on a comparison of the o
ptical properties of this knot with other known cases of optical emiss
ion associated with radio structures, we conclude that the continuum e
mission is optical synchrotron radiation. Our observations are consist
ent with the suggestion that 3C346 is a foreshortened FR-11 radio gala
xy with its radio axis oriented close to the line of sight. The optica
l and radio emission from the knot appear to be associated with a hots
pot (at the end of a jet) on the near side. Finally, our U and r' imag
es of 3C346 provide a striking illustration that the optical morpholog
ies of nearby radio galaxies also depend upon wavelength and that stud
ies of these objects are relevant to the interpretation of the alignme
nt effect seen in high redshift radio galaxies.