Nanocrystalline Ge particles embedded in a SiO2layer, directly formed by an excision process from a SiGe strained layer during low temperature ultraviolet‐assisted oxidation are shown to exhibit visible photoluminescence. The emission maxima of the photoluminescence spectra are situated at around 2.18 eV, a value that corresponds, according to recent data to an average particle size of 5 nm, in excellent agreement with our previous Raman and transmission electron microscopy measurements of particle size. It is proposed that stress effects associated with the oxidation of small spherical particles allow the formed nanocrystalline Ge to survive during prolonged ultraviolet oxidation of the SiGe layer. ©1996 American Institute of Physics.