Optical properties of Nd3+-doped MgO:LiNbO3 have been intensively studied during the last years because of its potential applications as a multifunctional non-linear laser system capable, for example, of multi-frequency laser light generation. In order to exploit fully the advantages of this system, a complete knowledge of its excited state dynamics is required. The application of high-hydrostatic pressure is a powerful technique to study the influence of the changing strength of the crystal field on the spectroscopic properties of luminescent centers in crystals. We have studied the dependence of the emission bands and the lifetimes of the metastable 4F3/2 state of Nd3+ on hydrostatic pressure.