In this study, obvious up-conversion emission peaks centred at 553 nm and 696 nm were investigated in transparent Ho3+ and Tm3+ co-doped lead lanthanum zirconate titanate (PLZT) ceramics. Temperature dependent visible up-conversion emission and mid-infrared photoluminescence at approximately 2.0 μm were studied, and obvious luminous color modulation from yellow-green to red was observed. Energy transfer between Ho3+ and Tm3+ ions was studied by analyzing the suppression and enhancement of the emission peaks. Moreover, random lasing emission peaks at 1.95 μm were achieved with a full width at half maximum of 5 nm, which was desirable for developing mid-infrared lasers in ceramics materials.