  We report optical and infrared imaging spectroscopy observations of the young
binary object Sigma Orionis IRS1 A/B. The brighter component (Sigma Ori IRS1 A)
of this binary system has M1 spectral type and a mass in the range of 0.3 to
0.8 solar masses. The fainter component (Sigma Ori IRS1 B) has a unique
morphology and spectrum. The unresolved stellar object is surrounded by an
extended envelope that is slightly offset from the position of this star. The
envelope's spectrum shows strong emission lines of H and HeI but no
shock-excited emission from molecular hydrogen or from [FeII]. The embedded
stellar object Sigma Ori IRS1 B has an absorption spectrum characteristic of a
late M photosphere, but with an additional approximately equal amount of dust
continuum flux veiling the absorption lines. Sigma Ori IRS1 B is probably a
young brown dwarf embedded in a proplyd that is being photo-evaporated by the
UV flux of the nearby multiple O and B star system Sigma Ori.
