Cu 2 O and two types of Cu 2 O–Ag–Cu 2 O (CAC) multilayered thin films were deposited on glass substrates using DC-magnetron sputtering. For CAC films, the mass thickness of Ag layer was controlled at 3 nm. After deposition, some of these films were annealed using a rapid thermal annealing (RTA) system at 650 °C, in order to create embedded Ag particles. AC films were used to study the clustering effect of Ag in Ar atmosphere, as well as for forming the 2nd type of CAC film by covering another Cu 2 O layer on the annealed AC structure. A UV–VIS–NIR photometer, a Hall measurement system, and a I–V measurement system were used to characterize the optical and electrical properties of these films with and without RTA. The results show that 2-dimensional Ag layer can transform into many individual particles due to its high surface tension at annealing temperature, no matter when the annealing was carried out. For CAC films, without annealing, the optical transmission and the resistivity are decreased with the inserted Ag layer. After annealing, both the transmission and resistivity are increased, possibly due to the clustering effect of Ag layer. Most importantly, it is found that the embedded Ag particles can increase the light absorption in the NIR–IR region, which can increase photo-induced current.