Well dispersed uniform sub-4 nm Y2O3:Eu colloidal nanocrystals have been synthesized through the non-hydrolytic high-temperature thermal decomposition technique. The as-synthesized nanocrystals can be stably dispersed in nonpolar solvents due to the capping organic ligands on their surface. Compared with bulk materials, the nanocrystals exhibited different luminescence features, including the intensity enhancement of the D-5(0) -> F-7(4) transition observed in the emission spectrum.