Lu(2-x)Ho(x)O(3) (x = 0.015-0.211) nanocrystals were synthesized by the modified Pechini method, and their nanoceramics were produced by the high-pressure low-temperature technique. Structural, morphological studies, and distribution particle size of nanocrystals and sintered pellets were carried out using X-ray powder diffraction, Raman spectroscopy, electron microscopy, and electron diffraction. The optical spectroscopy studies of Ho(3+) were carried out using optical absorption and emission, as well as lifetime measurements.