We report the first example of a dilute magnetic semiconductor (DMS) confined in all three dimensions (DMS quantum dot). Zn0.93Mn0.07S clusters of-25 A diameter are successfully synthesized inside a glass matrix and fully characterized by chemical analysis, x-ray diffraction, extended x-ray absorption fine structure (EXAFS), and photoluminescence spectroscopy. Effect of size quantization on the exciton energy has been observed. Preliminary magnetic susceptibility data are presented and discussed.Diluted magnetic semiconductors (DMS) of the type All_lxMnx BVI,--where a part of the Group II cation, A, is randomly substituted by the magnetic ion, Mn ++, have received extensive studies recently. 1 The presence of localized magnetic ions in a semiconductor alloy leads to an exchange interaction between the sp band electrons and the d electrons of the Mn ++. This sp-d exchange interaction constitutes a unique interplay between semiconductor physics and magnetism and results in unusual magnetotransport and magneto-optic phenomena such as a large Faraday rotation, giant negative magneto-resistance, and a magnetic-fieldinduced metal-insulator transition. 1 Their ternary nature also makes it possible to tune the band parameters and lattice constants by varying the alloy composition. These latter properties makes them attractive candidates for the preparation of superlattices and multiple quantum well structures with molecular beam epitaxy. The successful preparation of superlattices and the consequent extension of the study of DMS to the two-dimensional regime represents one of the most exciting recent developments in the area of DMS and presents a whole new set of challenges and opportunities. [1][2][3][4][5] In this letter we report, what we believe to be, the first successful fabrication and characterization of diluted magnetic semiconductor clusters confined in all three dimensions, i.e. DMS quantum dots. We report detailed preparation procedures and characterization by x-ray diffraction, EXAFS, and photoluminesce spectroscopy. The effects of quantum-confinement on the optical absorption spectra and the magnetic susceptibility have been observed and will be discussed. This study of DMS quantum dots represents part of our continuing program in developing synthetic methodology and fundamental understanding of semiconductor clusters. 6-7We chose Znl_xMnxS as the first system for study. From the previous work on II-VI semiconductor clusters 6'7, it is known that small clusters of this type exist in the zinc blende (sphalerite) structure. This is compatible with the known zinc blende structure of Znl_xMnxS when x <0.1. 8 Similar considerations also suggest that Cd 1_ xMnx S is not a good candidate, at least initially, since it exists in the wurtzite structure for x up to -0.45, and therefore not 33