Nanostructured silicon carbon films composed of silicon nanocrystallites embedded in hydrogenated amorphous silicon carbon matrix have been deposited by plasma enhanced chemical vapour deposition technique using silane and methane gas mixture highly diluted in hydrogen. The structural and optical properties of the films have been investigated by X-ray diffraction, Raman, Fourier transform infrared, ultra violet-visible-near infrared and photoluminescence spectroscopies while the composition of the films has been obtained from nuclear techniques. The study has demonstrated that the structure of the films evolves from microcrystalline to nanocrystalline phase with the increase in radio frequency (rf) power. Further, it is shown that with increasing the rf power the size of silicon nanocrystallites decreases while the optical gap increases and a blueshift of visible room temperature photoluminescence peak can be observed.