Al2O3–EuAlO3 eutectic rods were directionally solidified using the Laser-Heated Floating Zone method, also known as Laser-Heated Pedestal Growth technique, with growth rates ranging between 25 and 750mm/h. The microstructure was found to be highly dependent on the processing parameters, the size of the phases decreasing with the growth rate down 200nm in samples grown at 750mm/h. At low rates, an interpenetrated network of the eutectic phases was obtained whereas at high growth rates a tendency towards a nanofibrous pattern was observed. The optical absorption and photoluminescence of the eutectics grown at 100mm/h and 350mm/h were measured at room temperature. The Judd-Ofelt parameters, Ω2, Ω4 and Ω6, were obtained from the absorption spectra. Under a 396nm lamp excitation, a red light emission centred in 616nm corresponding to the Eu3+ ion was detected. The Eu3+ emission was stronger in the samples with the finer microstructure.