Yb3+ and Ho3+ co-doped Lu2O3 nanocrystalline powders were synthesized by a reversestrike co-precipitation method. The as-prepared powders were examined by the X-ray diffraction and transmission electron microscopy. The phase composition of the powders was cubic and the particle size was in the range of 30~50 nm. Emission and excitation spectra of the powders were measured by a spectrofluorometer and the possible upconversion luminescence mechanism was also discussed.