We report on the synthesis and properties of nano-composites from thin Ni films on Silica matrix using Au-ion beam. When 2.2 MeV Au-ions are irradiated on 5 nm Ni film on Silica, the surface morphology changes drastically with ion fluence. In fact, within a fluence range of 5 x 10(14)-1 x 10(16) ions/cm(2), a sharp increase in surface roughness follows after an initial surface smoothening. The depth profiles extracted from Rutherford backscattering spectra demonstrates the diffusion of Ni and Au into the silica matrix. The photoluminescence spectra of the irradiated samples reveal the development of two bands centered at 3.3 eV and 2.66 eV, respectively. Deconvolution of those bands shows five different emission peaks, corresponding to different luminescence centers, which confirms the existence of Ni-Au nanocomposites in silica matrix. The optical and structural modifications are understood in terms of ion induced local heating and mass transport due to thermal spikes, which leads to nanocomposite formation in silica. (C) 2015 Elsevier B.V. All rights reserved.