We studied the optical properties of semiconductor clusters embedded into a
matrix material with a combination of linear and nonlinear optical spectro
scopic methods. The unique properties of small semiconductor particles with
sizes below the excitonic Bohr radius are generally governed by quantum si
ze effects. In this paper we investigate the exciton-phonon interaction, wh
ich is one of the leading contributions to the dephasing of excitons in sma
ll semiconductor particles, and the nonlinear optical behaviour of the comp
osite material in relation to the stabiliser and the filling factor.