SiO2/n-GaN/SiO2 composite films in the nanocrystalline form were deposited using a multi-target sputtering system onto fused silica substrates at a system pressure ∼25 Pa. Different sets of nanocomposite films with different ratios of the sizes of the nanocrystallites (d) and intercrystallite distances (s) were deposited by changing the substrate temperature during sequential sputtering of the targets. The films were characterized by measuring the microstructural and optical properties. Photoluminescence measurements were carried out at 300 K. The experimental absorption spectra could be faithfully described by considering the combined effect of scattering by the ultra-small crystallites and broadening due to inhomogeneity in the sizes of the films.