A simple two-step CVD method is developed to realize the growth of high-quality tin-catalyzed CdSSe alloy nanowires. Microstructural characterizations demonstrate that these wires are high-quality crystalline nanostructures. Local photoluminescence investigation of these nanostructures shows a typical band edge emission at 656 nm with a full-width at half-maximum of 22.3 nm. Optical waveguide measurement along an individual nanowire indicates that the output signal of the guided light has a rapid linear decrease accompanied with maximum red-shift about 109 meV after the transmission of 102 μm. This obvious red-shift is caused by the intensive band-tail absorption during the optical transmission process. Moreover, optically pumped nanolasers are successfully realized at room temperature based on these unique wires, further demonstrating the achievement of stimulated emission from spontaneous emission, promoted by the pump power intensity. This work may find a simple route to the manufacture of superior nanowires for applications in waveguide and integrated photonic devices.