This work reports the synthesis of indium oxide nanoparticles and their thermal, structural, microstructural and optical characterization. The preparation method is based on a surfactant-free room temperature soft chemistry route. Spherical indium oxide nanoparticles (about 8 nm in diameter) were obtained after thermal treatment of gels at 400 degrees C for 2 h, as shown by X-ray diffraction experiments and nitrogen adsorption measurements. Transmission electron microscopy observations confirm the single-crystalline nature of the produced nanoparticles. The photoluminescence emission spectrum at room temperature shows a broad peak with onset at approximately 315 nm as a result of quantum size effect as revealed by small-angle X-ray scattering. (c) 2008 Elsevier B.V. All rights reserved.