A new room-temperature synthesis of nanocrystals of scandium-doped zirconium oxide by sol-gel method is reported. The structure of the obtained product is checked with standard structural analysis methods. The crystal phase of ZrO2-Sc2O3 nanocrystals changes from monoclinic to tetragonal and cubic with the increase in scandium concentration. The importance of the cubic phase, which appears at 10mol% and refines at 16mol% of Sc2O3 concentration, is emphasized. The UV-Vis absorption spectra of the product are measured, and its bandgap is evaluated from the fundamental absorption edge. The value of the bandgap was calculated as 5.65eV for the cubic phase.