We report a density functional study of the electronic properties and hyperfine structure of substitutional selenium in silicon nanowires using plane-wave pseudopotential techniques. We simulated hydrogen passivated [001] oriented nanowires with a diameter up to 2 nm, analyzing the effect of quantum confinement on the defect formation energy and on the hyperfine parameters as a function of the diameter and of the defect position. We show that substitutional Se in silicon has favorable configurations for positions near the surface with possible formation of chalcogen–hydrogen complexes. We also show that hyperfine interactions increase at small diameters, as long as the nanowire is large enough to prevent surface distortion which modifies the symmetry of the donor wave function. Moreover, surface effects lead to strong differences in the hyperfine parameters depending on the Se location inside the nanowire …