CdSe quantum dots (QDs) have been prepared and modified with mercaptoacetic acid. They are water-soluble and biocompatible. To improve their fluorescence intensity and stability in water solution, bovine serum albumin (BSA) was absorbed onto their surface. Based on the quench of fluorescence signals of the functionalized CdSe QDs in the 543 nm wavelength and enhancement of them in the 570–700 nm wavelength range by Ag(I) ions at pH 5.0, a simple, rapid and specific method for Ag(I) determination was proposed. In comparison with single organic fluorophores, these nanoparticles are brighter, more stable against photobleaching, and do not suffer from blinking. Under the optimum conditions, the response is linearly proportional to the concentration of Ag(I) between 4.0 × 10−7 and 1.5 × 10−5 mol L−1, and the limit of detection is 7.0 × 10−8 mol L−1. The mechanism of reaction is also discussed.