A novel, solution-based route to biocompatible, cysteine-capped gold-zinc telluride (Au-ZnTe) core-shell nanoparticles with potential in biomedical applications is described. The optical properties of the core-shell nanoparticles show combined beneficial features of the individual parent components. The tunable emission properties of the semiconductor shell render the system useful for imaging and biological labeling applications. Powder X-ray diffraction analysis reveals the particles contain crystalline Au and ZnTe. Transmission electron microscope (TEM) imaging of the particles indicates they are largely spherical with sizes in the order of 2-10 nm. Elemental mapping using X-ray energy dispersive spectroscopy (XEDS) in the scanning transmission electron microscope (STEM) mode supports a core-shell morphology. The biocompatibility and cytotoxicity of the core-shells was investigated on a human pancreas adenocarcinoma (PL45) cell line using the WST-1 cell viability assay. The results showed that the core-shells had no adverse effects on the PL45 cellular proliferation or morphology. TEM imaging of PL45 cell cross sections confirmed the cellular uptake and isolation of the core-shell nanoparticles within the cytoplasm via membrane interactions. The fluorescence properties of the Au-ZnTe core-shell structures within the PL45 cell lines results confirmed their bio-imaging potential. The importance and novelty of this research lies in the combination of gold and zinc telluride used to produce a water soluble, biocompatible nanomaterial which may be exploited for drug delivery applications within the domain of oncology.