Y2O3:Eu nanocrystals in the size range 70-100 nm have been synthesized with a photoluminescence efficiency 10-20 % higher than that of the commercial bulk material. The Figure shows nanocrystalline Y2O3:Eu after firing of the precursor material. It can be seen that the crystals are structurally perfect, i.e., no defects are found within the crystal structure.