Semiconductor glasses are the basic components of the integrated circuit and are responsible for the starting rapid growth of the electronic industry in the past fifty-to-sixty years worldwide. Bulk glasses of the Se 80-x Te 20 Ag x (x = 0, 5 and 10) system are prepared by the conventional melt quenching technique. Thin film, with a thickness of 300 nm is prepared by thermal evaporation technique on quartz glass. Spectral dependence of the transmittance (T) in the spectral range 300-1200 nm of glassy Se-Te-Ag is observed at various compositional variations. Optical constants i.e. refractive index (n), extinction coefficient (k), absorption coefficient (α), band gap (E g ) are calculated with and without annealing the sample at different temperatures. Computerized spectrophotometer A JASCO, V-500 UV/VIS/NIR was used for measuring the above mentioned optical constants.