Silicon is the cornerstone of the semiconductor industry. In the nanoscale, the surface gains considerable significance due to the large surface to volume ratio. Recent theoretical advances in the investigation of the excited state properties of silicon quantum dots (QDs) are reviewed in this article. The origin of optical properties in silicon QDs is attributed to the tetrahedral crystalline structure in the Si nanostructures. Consequently, passivating the surfaces of these Si nanostructures by a suitable species turns out to be the most effective avenue for the retention of their tetrahedral structural symmetry and in turn their photoluminescence (PL) properties. The passivating agent and the extent of surface passivation need to be chosen very judiciously for the purpose of realizing the practical applications of the dots. Structural relaxation in the excited state induces Stokes shift, which varies with the particle size, the degree of surface passivation, and the nature of the passivating species. Stokes shift needs to be minimized for maximizing the PL efficiency of the QDs. All these intermingled issues are briefly addressed in the article. 1 Introduction Silicon has been playing a ubiquitous role in our day-to-day lives through the use and application of modern technology. The continued trend for miniaturization of electronic devices induces the genesis of novel properties, which in turn integrate themselves into the devices. As the silicon-based materials shrink in size down to the nanoscale, manifold interesting changes show up: the indirect band gap (corresponding to the Si bulk crystal) gradually transforms itself into a direct band gap semiconductor, the energy or band gap widens, and the surface to volume ratio increases. The sum-total of the unprecedented bonuses accruing from the downsizing of Si-based materials is commonly known as quantum size effect or quantum confinement effect. The quantum size effect comes into play when the Si-based materials downsize to 5 nm and less than that. This critical dimension of 5 nm is referred to as the Bohr excition radius (or the de Broglie wavelength of an electron-hole pair) at which the Si-based nanomaterials turn into quantum dots (QDs). The properties of QDs are intermediate between those of bulk semiconductors and those of discrete