This chapter provides an overview of some recent research activities on the study of optical and dynamic properties of semiconductor nanomaterials. The emphasis is on unique aspects of these properties in nanostructures as compared to bulk materials.Linear, including absorption and luminescence, and nonlinear optical as well as dynamic properties of semiconductor nanoparticles are discussed with focus on their dependence on particle size, shape, and surface characteristics. Both doped and undoped semiconductor nanomaterials are highlighted and contrasted to illustrate the use of doping to effectively alter and probe nanomaterial properties.Some emerging applications of optical nanomaterials are discussed towards the end of the chapter, including solar energy conversion, optical sensing of chemicals and biochemicals, solid state lighting, photocatalysis, and photoelectrochemistry.2