Three different types of water-soluble Cd 1Àx Zn x S quantum dots (QDs) having nearly identical sizes and compositions have been synthesized via simple and low-cost methods to understand the effect of internal structures on the optical properties of QDs. Compared with the other two types, CdS@ZnS core-shell Cd 1Àx Zn x S QDs and alloy Cd 1Àx Zn x S QDs, composition-gradient CdS@ZnS core-shell Cd 1Àx Zn x S (G-Cd 1Àx Zn x S) QDs, which have been prepared by exchanging the Cd 2+ ions of CdS QDs partially with Zn 2+ ions conserving the shapes and sizes, have shown the longest lifetime and the highest quantum yield of photoluminescence due to the smallest nonradiative and the largest radiative decay constants of photogenerated charge carriers. The composition-gradient ZnS shells, which passivate the CdS cores optimally alleviating the lattice strain caused by the lattice mismatches between the CdS cores and the ZnS shells, have been considered to be the main reason for the enhanced optical properties of G-Cd 1Àx Zn x S QDs. Among our prepared G-Cd 1Àx Zn x S QDs, the quantum yield and the lifetime of photoluminescence are the highest (22%) and the longest (290 ns), respectively, due to the smallest nonradiative decay constant when about half of the Cd 2+ ions in CdS QDs are replaced by Zn 2+ ions with composition gradients from their surfaces, suggesting that internal structures play an important role in the relaxation dynamics of photoexcited charge carriers.