Magneto-excitons in droplets of a spin polarized chiral Luttinger liquid formed in quantum dots in a magnetic field are studied. The coupling of magneto-excitons to low energy excitations of an interacting droplet (edge magneto-rotons) leads to a strong enhancement of the oscillator strength at the Fermi level (Fermi edge singularity). The condensation of edge magneto-rotons signals the reconstruction of the droplet and is accompanied by new structures in the absorption spectrum. Copyright (C) 1996 Elsevier Science Ltd.989847851