A novel CdTe/Ni QDs which combined both magnetism and fluorescence was successfully synthesized and its optical properties were investigated. Ni magnetic nanoparticles (MNPs) were synthesized and used as magnetic core, CdTe quantum dots (QDs) were applied as fluorescent shell material, the qualified magnetic CdTe/Ni quantum dots (mQDs) were achieved via layer-by-layer process using 1,6-hexylenediamime as linker, surface charge types of MNPs and mQDs were confirmed with a delsa nano beckman coulter. Morphology of the prepared Ni MNPs and CdTe/Ni mQDs was characterized by transmission electron microscopy (TEM), and optical properties were investigated with fluorescence spectrum (FS). Qualified CdTe/Ni mQDs with high fluorescence and narrow maximum emission peak width were obtained under the optimum conditions. Surface zeta-potential of CdTe QDs and Ni MNPs were estimated to be -36.2 and 27.97mV, respectively. TEM data indicated that ca 20nm of Ni MNPs and ca 25nm of CdTe/Ni mQDs were prepared, respectively; the size-increasing indicated the formation of CdTe shell on the Ni MNPs core. Narrow half peak width of emission peak was detected and calculated to be about 50nm via FS. High fluorescence intensity of CdTe/Ni mQDs was determined and brilliant yellow solution was observed when excited under UV360nm. The synthesized CdTe/Ni mQDs showed excellent magnetic property, and can be magnetically concentrated with a common magnet. The obtained data indicated that the prepared bi-functional CdTe/Ni mQDs possess excellent magnetic and fluorescent properties, and it can be used as a energy donor in DNA sensing based on fluorescence resonance energy transfer (FRET).