This paper studies the effect of plasmon Ag NPs on the spectral properties of semiconductor CdTe QDs. The size and shape of the prepared nano-materials have been characterized using transmission electron microscope. CdTe luminescence enhancement has been reported to be ~11 fold. Red shift and decrease in the emission threshold have been reported. Forster resonance energy transfer (FRET) between CdTe QDs at nanoscale proximity to Ag NPs was calculated. The effect of Ag NPs on fluorescence lifetime of CdTe QDs was also measured. These nanocomposites are promising candidates for LED and laser devices.