Near-infrared (NIR) luminescent Si-rich oxynitride nanostructures were fabricated by very high frequency plasma enhanced chemical vapor deposition followed by thermal annealing. By increasing the annealing temperature from 600 °C to 1100 °C, the intensity of NIR emission can be remarkably improved by more than three times. Si nanocrystals (NCs) with diameters ranging from 2 nm to 4 nm are found to play a decisive role in the enhanced NIR emission. The PLE spectra indicate a band-to-band excitation process with a quantum confinement feature in Si nanocrystals. Combining with the infrared absorption spectra and X-ray photoelectron spectra analyses, it is suggested that the photoexcited carriers for the enhanced NIR emission mainly originate in the quantum confined Si NCs, while their radiative recombination occurs in the surface states related to N-Si-O bonds.