We have fabricated the first Si:Er LED, operating at 300 K, based on an understanding of the Si-Er-O materials system. Er-doped Si (Si:Er) provides an exciting opportunity for the monolithic integration of Si based opto-electronics. In this paper, Er-Si reactivity, and Er diffusivity and solubility have been studied to establish Si:Er process compatibility with a silicon IC fabline. Er3 Si5 is the most stable silicid formed; and it can be oxidized into Er2O3 at high temperature under any oxidizing conditions. Among Er compounds, Er2O3 luminesces and Er3Si5 and ErN do not. The diffusivity of Er in Si is low and SIMS analysis yields a diffusivity D(Er) ∼ 10−12cm2/s at 1300 C and ∼ 10−15cm2/s at 900 C, and a migration enthalpy of δHm(Er) ∼ 4.6 eV. The equilibrium solubility of Er in Si is in the range of 1016 cm−3 at 1300 C. The Si:Er LED performance is compared with GaAs LEDs to demonstrate its feasibility.