Silicon quantum dots embedded in dielectric matrix have interesting possible applications both in microelectronics and photovoltaics. In most cases the fabrication processes involve sputtering or plasma enhanced chemical vapour deposition (PECVD) followed by a high‐temperature (>1000°C) treatment. The possibility of realizing Si nanostructures in situ or at least reducing the annealing temperature deserves to be explored in view of a more direct and cheaper application. We report on annealing effects (temperature range 600‐1100°C) on silicon nitride films. Si rich samples have been deposited by PECVD at 300°C using two different gas mixtures: silane and nitrogen in one case and silane and ammonia diluted in nitrogen in the other. The evolution of Raman spectra, room temperature photoluminescence, and optical absorption of samples with similar refraction index has been investigated. Evidence of partial phase separation, with silicon‐rich and nitrogen‐rich regions, in the as‐grown material has been inferred, with the thermal treatments inducing further reorganization of the two phases. Crystallization of silicon aggregates has been detected only after the highest temperature treatment on both types of samples, with larger nanocrystals when growing the material from silane and nitrogen. (© 2010 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)