Zinc oxide (ZnO) nanoparticles (NPs) were stabilized in water using the amino acid L-cysteine. A transparent dispersion was obtained with an agglomerate size on the level of the primary particles. The dispersion was characterized by dynamic light scattering (DLS), pH dependent zeta potential measurements, scanning transmission electron microscopy (STEM), X-ray diffraction (XRD), Fourier, transform infrared (FTIR) spectroscopy; Raman spectroscopy, photoluminescence (PL) spectroscopy, and X-ray absorption fine :structure.(EXAFS; XANES) spectroscopy. Cysteine acts as a source for sulfur to form a ZnS shell around the ZnO core and as a Stabilizer for these core shell NPs. A large effect on the photoluminescent properties is observed: the intensity of the defect luminescence (DL) emission decreases by more than 2 orders of magnitude, the intensity of the near band edge (NBE) emission increases by 20%, and the NBE. wavelength decreases with increasing cysteine concentration corresponding to a blue shift of about 35 nm due to the Burstein-Moss effect.