The dispersion of silicon quantum dots (Si QDs) in water has not been established as well as that in organic solvents. It is now demonstrated that the excellent dispersion of Si QDs in water with photoluminescence (PL) quantum yields (QYs) comparable to those for hydrophobic Si QDs can be realized by combining the processes of hydrosilylation and self-assembly. Hydrogen-passivated Si QDs are initially hydrosilylated with 1-dodecence. The toluene solution of the resulting dodecyl-passivated Si QDs is mixed with the water solution of the amphiphilic polymer of Pluronic F127 to form an emulsion. Dodecyl-passivated Si QDs are encapsulated in the micelles self-assembled from F127 in the emulsion. The size of the Si-QD-containing micelles may be tuned in the range from 10 to 100 nm. Although self-assembly in the emulsion causes the PL QY of Si QDs to decrease, after a few days of storage in ambient conditions, Si QDs encapsulated in the water-dispersible micelles exhibit recovered PL QYs of approximate to 24% at the PL wavelength of approximate to 680 nm. The intensity of the PL from Si QDs encapsulated in the water-dispersible micelles is >90% of the original value after 60 min ultraviolet illumination, indicating excellent photostability.