For mercury-free fluorescent Lamps and plasma display panels, alternative luminescent materials are required for the efficient conversion of vacuum ultraviolet radiation to visible Light. Quantum cutting involving the emission of two visible photons for each vacuum ultraviolet photon absorbed is demonstrated in Eu3+-doped LiGdF4 with the concept of downconversion. Upon excitation of Gd3+ with a high-energy photon, two visible photons can be emitted by Eu3+ through an efficient two-step energy transfer from Gd3+ to Eu3+, with a quantum efficiency that approaches 200 percent.