A new synthesis of samarium doped Au nano composite polymer films is described and the optical characteristics were analysed. Polyvinyl alcohol act as a reducing as well as capping agent. Optical absorption spectral analysis confirms the presence of Sm3+ ions and the formation of Au nanoparticles. Au-surface plasmon band intensity increases with the increase of chloro auric acid concentration and the full width at half maxima (FWHM) is reduced, correspondingly. Using Judd-Ofelt theory the oscillator strengths were calculated for Sm3+ ions. Photoluminescence studies has been carried out and it shows that the incorporation of the nanoparticles quenches the emission from the Sm3+ ions. (c) 2006 Elsevier B.V. All rights reserved.