Silver iodide nanoclusters were successfully prepared in the channels of mordenite by a heat diffusion method. Powder X-ray diffraction, adsorption technique and infrared spectroscopy were used to characterize the prepared materials, which showed that the guest silver iodide had been encapsulated in the channels of mordenite. The optical properties of the solid phase diffuse reflectance absorption of nanocomposite material NaM-AgI were studied, showing that the absorption bands of the diffuse reflectance absorption of the prepared material moved to the region of high energy. The absorption peak of the material prepared shifted to the region of high energy. Namely, blue shift was caused. This has demonstrated the incorporation of silver iodide into the channels of the zeolite. We observed the luminescence and surface photovoltage spectra of NaM-AgI sample, proposing the mechanisms of the photoluminescence and photovoltaic responses.