Dye-sensitized quantum dots (QDs) are promising candidates for dye-sensitized solar cells (DSSCs). Here, we report steady state (absorption and photoluminescence) optical measurements on several sizes of CdS QDs ligated with Coumarin 343 dye (C-343) and two different solvents, viz., chloroform and toluene. We further report detailed first principles density functional theory and time-dependent density functional theory studies of the geometric, electronic and optical (absorption and emission) properties of three different sized capped QDs, ligated with C-343 dye. The absorption spectrum shows a QD-size-independent peak, and another peak which shifts to blue with decrease in QD size. The first peak is found to arise from the dye molecule and the second one from the QD. Charge transfer using natural transition orbitals (NTOs) is found to occur from dye-to-QDs and is solvent-dependent. In the emission spectra, the luminescence intensity of the dye is quenched by the addition of the QD indicating a strong interaction between the QD and the dye.