Transparent YAG ceramics can be prepared by using synthesized nano-sized powder. A carbonate precursor with high sintering activity was prepared by co-precipitation method using ACH as precipitant. The resulting YAG powder and precursor precipitant are characterized by DAT-TG, IR, XRD, TEM and PL. The results show Nd∶YAG powder with nano-sized, mono-dispersed and free agglomeration can be obtained by co-precipitation method at the presence of HPC. The Nd~(3+) PL intensity increased with the rising of the sintering temperature.