CeO2:1%Er, CeO2:1%Er, 5%Li and CeO2:1%Er, 10%Li translucent ceramics were fabricated for the first time. Under the 980nm diode laser excitation, the ceramics gave intense green (520–570nm) and red (640–680nm) upconversion luminescence, which were ascribed to the radiative transitions of 2H11/2, 4S3/2→4I15/2 and 4F9/2→4I15/2 of Er3+ ions, respectively. It was worthy to point out that the above upconversion luminescence intensity of CeO2:Er, Li ceramics was greatly enhanced, and the preliminary observation suggests that the transmittance of CeO2:Er, Li ceramics in the visible spectral region was improved when Li+ ions were introduced as ceramics fluxing agent. The effect of Li+ ions doping on microstructure and upconversion emission of CeO2:Er translucent ceramics was investigated and the possible reasons for these results were presented, respectively.