Abstract: A semiconductor-containing glass having a high nonlinear optical effect is provided which comprises a glass matrix mainly composed of SiO.sub.2 wherein said glass matrix contains a semiconductor microcrystal having a particle size of less than 100.ANG..This semiconductor-containing glass is produced by a method which comprises subjecting a solution containing a metal alkoxide containing at least a silicon alkoxide as well as a semiconductor having a particle size of less than 100.ANG., to hydrolysis reaction to obtain a gelled solid and heating the resulting gelled solid to 400.degree.-1300.degree. C. to form a glass or a method which comprises subjecting a solution containing a metal alkoxide containing at least a silicon alkoxide as well as a metal salt which becomes semiconductor upon decomposition, to hydrolysis reaction to obtain a gelled solid; heating the gelled solid to 400.degree.-1300.degree. C. to form a glass; and simultaneously with or after the heating to 400.degree.-1300.degree. C.