A set of nanocomposite thin films consisting of Au nanoclusters dispersed in a TiO2 dielectric matrix was deposited by reactive magnetron sputtering, and subjected to thermal annealing in vacuum, at temperatures ranging from 200 to 800 degrees C. The obtained results show that the structure and the size of Au clusters, together with the matrix crystallinity, changed as a result of the annealing, and were shown to be able to change the optical properties of the films and keeping good mechanical properties, opening thus a wide number of possible applications. The crystallization of the gold nanoclusters induced by the annealing was followed by a systematic change in the overall coating behaviour, namely the appearance of surface plasmon resonance (SPR) behaviour. This effect enables to tailor the thin films reflectivity, absorbance and colour coordinates, contributing to the importance of this thin film system. The different attained optical characteristics (reflectance values ranging from interference to metallic-like behaviours and colour varying for interference rainbow-like to several tones of red-brownish), associated with a reasonable mechanical resistance of the coatings (good adhesion to different substrates and hardness values ranging from 5 to 7.5 GPa), induce the possibility to use this film system in a wide range of decorative applications. (C) 2010 Elsevier B.V. All rights reserved.