The nanocomposites of Y(3)Al(5)O(12):Nd(3+) (YAG:Nd) incorporated in borate glass were obtained. The single phase of YAG:Nd nanocrystals were obtained by sol-gel method. The borate glass was melted first and ground up then mixed with the nanocrystals. The samples were formed into pellets under pressure and were annealed in temperatures from the range 550-800 degrees C. The X-ray diffraction patterns show that together with increasing the temperature the contribution of Y(3)Al(5)O(12) phase decreases and the new YBa(3)B(9)O(19) phase is observed. The luminescence measurements indicates that the band structures and distribution of band intensities of glass-YAG:Nd nanocrystal composites depends crucially on annealing temperature. (C) 2011 Elsevier Ltd. All rights reserved.