We have demonstrated the formation of high areal-density β-FeSi2nanodots (NDs) on SiO2 by remote H2-plasma induced self-assembly of Fe-NDs and subsequent SiH4-exposure at 400°C. Under either 976- or 514.5-nm light excitation of NDs after the SiH4-exposure, stable photoluminescence (PL) signals, being characteristic of the semiconducting phase as β-FeSi2, were observed even at room temperature in the energy region over the indirect bandgap of bulk β-FeSi2 (~0.7 eV). The temperature dependence of PL was confirmed to be weak significantly in comparison to that of bulk bandgap, implying light emission from tightly confined NDs. And also, with a decrease in the average dot size by controlling the initial Fe-film thickness, a clear blue shift in PL was observed. The results are associated with quantum size effect in radiative recombination of photoexcited electron-hole pairs.