Modifying the optical behavior of zincetellurite glass by embedding magnetic nanoparticles has implication in nanophotonics. A series of zincetellurite glasses containing natural Fe3O4 nanoparticles with composition (80 - x)TeO2:xFe3O4:20ZnO (0<x< 2) in mol% are synthesized by melt quenching method and their optical properties are investigated using FTIR and UVeviseNIR spectroscopies. LorentzeLorenz relations are exploited to determine the refractive index, molar refraction and electronic polarizability. The sharp absorption peaks of FTIR spectra show a shift from 667 cm-1 to 671 cm-1 in the presence of nanoparticles that increase the non-bridging oxygen, confirmed by the intensity change of the TeO3 peak at 752 cm-1 . A new peak around 461 cm-1 is also observed which is attributed to the band characteristic of covalent Fe-O linkages. A decrease in the Urbach energy as much as 0.122 eV and the optical energy band gap with the increase of Fe3O4 concentration (0.5-1.0 mol%) is evidenced. Electronic polarizability of the glasses increases with increasing Fe3O4 nanoparticles concentration up to 1 mol%. Interestingly, the polarizability tends to decrease with the further increase of Fe3O4 concentration at 2 mol%. The role of magnetic nanoparticles in influencing the structural and optical behavior are examined and understood.