Pulsed laser deposition has been used to grow thin (10–84 nm) epitaxial layers of Yttrium Iron Garnet Y3Fe5O12 (YIG) on (111)–oriented Gadolinium Gallium Garnet substrates at different growth conditions. Atomic force microscopy showed flat surface morphology both on micrometer and nanometer scales. X-ray diffraction measurements revealed that the films are coherent with the substrate in the interface plane. The interplane distance in the [111] direction was found to be by 1.2% larger than expected for YIG stoichiometric pseudomorphic film indicating presence of rhombohedral distortion in this direction. Polar Kerr effect and ferromagnetic resonance measurements showed existence of additional magnetic anisotropy, which adds to the demagnetizing field to keep magnetization vector in the film plane. The origin of the magnetic anisotropy is related to the strain in YIG films observed by XRD. Magneto-optical Kerr effect measurements revealed important role of magnetization rotation during magnetization reversal. An unusual fine structure of microwave magnetic resonance spectra has been observed in the film grown at reduced (0.5 mTorr) oxygen pressure. Surface spin wave propagation has been demonstrated in the in-plane magnetized films.