Water soluble small size CdTe QDs were synthesized by using 2-mercapto ethanol (2ME) as stabilizer. The optimum size of QDs was obtained after certain time of reflux. Synthesized 2ME capped CdTe QDs show large Stokes shifted photoluminescence. At the single particle detection level, 2ME capped CdTe QDs showed reduced blinking behavior compared to that of TGA capped CdTe QDs. These results indicate that the thiol moiety of 2ME, which is a strong electron donor, saturated the surface traps with electrons, preventing the traps from accepting the Auger ionized electrons from the core of CdTe QD. (C) 2013 Elsevier B.V. All rights reserved.