We investigate the optical lifetime, decay characteristics, spectral linewidth and energy level properties of thulium ions doped in a KY(WO 4 ) 2 crystal at 4 K temperature. High doping concentration of thulium ions with inhomogeneous broadening allow us to study nonradiative behaviors, instantaneous spectral diffusion, and spectral power broadening in this solid-state material. The theoretical consideration of ion–ion interactions is shown to accurately characterize the absorption, decay and other spectral behaviors of Tm 3+ ions. We observe more than ten-fold reduction in the decay time of 3H4 state and about three-fold reduction in the spectral-hole lifetime as we approach the center of the inhomogeneous broadening, corresponding to higher optical densities.