High transparency Nd: Y2O3 ceramics were prepared by vacuum sintering with La2O3 and ZrO2 sintering additives. The optimum in-line transmittance of the sintered Nd: Y2O3 is 80.98% at the wavelength of 1100nm, for which the content of La2O3 and ZrO2 are 10.0 and 3.0at.%, respectively. This specimen demonstrates homogeneous microstructure with the average grain size of 8.3m. The mechanism of sintering with La2O3 and ZrO2 aids and the optical properties was discussed. The absorption, emission cross section, and fluorescence lifetime have been estimated as 1.62x10(-20)cm(2), 5.13x10(-20)cm(2), and 232s, respectively. Vickers hardness and the fracture toughness were measured of 9.18GPa and 1.03Mpa center dot m(1/2), respectively. All the results indicate that Nd: Y2O3 transparent ceramic is a promising candidate for laser material.