We have implanted ions of Sn, Au and Cu at energies between 160 keV and 2.0 MeV into single crystals of MgO (100) at room temperature. The formation of nanoclusters was confirmed using photospectrometry, in combination with Mie's theory, which was indirect but nondestructive. Using Doyle's theory, as well as Rutherford Backscattering Spectrometry (RBS), we correlated the full width half maximum of the absorption bands to the estimated size of the metallic nanoclusters between 1–10 nm. These clusters were formed both by over implantation and by a combination of threshold fluence of the implanted species and post thermal annealing. The changes in the estimated size of the nanoclusters, after annealing at temperatures ranging from 500°C to 1000°C, were observed using photospectrometry.