We have synthesized a new class of indium aluminate (InAlO3) nanoparticles at different calcinations temperatures by a very simple and cost effective wet chemical method. Composition analysis was carried out by using Fourier transform infrared spectroscopy and energy dispersive X-ray spectroscopy. X-ray diffraction pattern revealed that the as prepared samples have hexagonal phase with cubic traces. The samples calcined above 400 degrees C revealed cubic phase. Scanning electron microscopy showed that the as prepared and calcined samples have rock like irregular shape agglomerates. Thermal behavior was studied by using differential scanning calorimeter. The blue emission observed in photoluminescence studies was attributed to oxygen vacancies. The dielectric constant of InAlO3 was found to be very high (approximate to 32 at I kHz). The dielectric loss (tan delta), temperature coefficient of capacitance (TCC), temperature coefficient of permittivity (TCP) and linear expansion coefficient (alpha) were found to be very low. The results obtained indicated that the synthesized InAlO3 nanoparticles could be used to prepare nano/thin films by thermal evaporation technique for the fabrication of field effect thin film transistors and opto electronic device applications in the near future. (C) 2014 The Society of Powder Technology Japan. Published by Elsevier B.V. and The Society of Powder Technology Japan. All rights reserved.