Nanocrystals of SrAl2O4:Eu2+ have been prepared by combustion synthesis. The results of XRD indicated that the resulting SrAl2O4:Eu2+ nanocrystals have a reduced and distorted monoclinic lattice compared with bulk materials. Both the excitation and emission spectra of SrAl2O4:Eu2+ nanocrystals shifts to higher energies in contrast to the bulk materials. The band structure calculation is performed using first-principles full potential-linearized augmented plane wave method within density functional theory. The calculated results are in reasonable agreement with our experimental results. (C) 2004 Elsevier B.V. All rights reserved.