Phase pure nanopowders of undoped and neodymium ( Nd 3+)-doped yttrium-aluminum-garnet(YAG) was synthesised by sol-gel process using nitrate-citrate gel method. Complete crystallisation of YAG was studied using Fourier transform infra-red spectroscopy (FTIR) and x-ray diffraction (XRD). Complete phase formation took place at 900 OC for 2 h. The average primary particle size calculated was ~25 nm. Transmission electron microscopy (TEM) showed particles in the range of ~25 nm to 30 nm. Nd -dopant concentration levels of 2 and 4 atomic per cent were studied. Using XRD data the cell parameters of Nd (0, 2 and 4 atomic per cent):YAG were calculated and it was found to increase with increase in dopant concentration. Defence Science Journal, 2011, 61(3), pp.214-218 , DOI:http://dx.doi.org/10.14429/dsj.61.438