This letter reports the photoluminescence properties of CdSe quantum dots (QDs) embedded in a ferroelectric BaTiO3 matrix. The main emission from the samples has been assigned to the band-edge transition of QDs. With an increase in the heat treatment temperature, the emission peak has been shifted to a longer wavelength. This shift has been attributed due to the dielectric environment effects of the matrix on the electronic structure of the QDs. The dependences of the peak position on the heat-treatment temperature and dot size are found in agreement with the theoretical simulation results reported previously.