Er doped nc-Si thin films have been investigated by spectroscopic ellipsometry (SE). The optical response of Er ions in a nc-Si/SiO matrix has been determined by SE, and it has been used to detect Er contents as low as ~0.2at%. The complex layered nanostructure of nc-Si:Er:O has been resolved and it has been found that it is strongly influenced by the Er-doping and the oxygen in-depth distribution profile. SE results are discussed in comparison with data obtained by the standard methods of the X-ray diffraction, Rutherford backscattering and Raman spectroscopy.