In 1−x Sn x (x = 0.06−0.51) alloy films were deposited on Si substrates by electron beam evaporation and characterized by X-ray diffraction, field-emission scanning electron microscopy, atomic force microscopy, and spectroscopic ellipsometry. The dielectric functions of the In 1−x Sn x alloy films were obtained in the energy range from 1.55 to 4.13 eV based on the spectroscopic ellipsometry measurements, and it is believed that a solid−solid phase transitions led to changes in ε. The phase diagram of nanometer-sized particles is different from that of the bulk material, and this phenomenon can be explained by the surface stress of the particles. The effects of alloying on the electronic band structure were studied from the perspective of first-principles calculations.