Nanoscale silver clusters were prepared in a soda-lime glass matrix through the ion-exchange (Ag+ ↔ Na+) method followed by thermal annealing in oxidizing atmosphere. The effects of annealing time and temperature on the plasmonic response and optical properties of silver nanocluster in glass matrices have been investigated by using UV-visible absorption spectroscopy and photoluminescence spectroscopy. The surface plasmon resonance of silver nanoparticles has been observed in annealed samples. The blue shift has been observed as a function of post-annealing time at a constant temperature. Transmission electron micrographs show the presence of spherical nanoparticles with a maximum particle size of 4-5 nm after annealing, which is consistent with Mie theory based results. The nano-sized Ag nanocluster on glass matrix is suitable as future prospective for potential applications in optical data storage.