Nanocrystals of indium oxide (In(2)O(3)) with sizes below 10 nm were prepared in alumina matrixes by using a co-pulverization method. The used substrates such as borosilicate glasses or (100) silicon as well as the substrate temperatures during the deposition process were modified and their effects characterized on the structural and physical properties of alumina-In(2)O(3) films. Complementary investigation methods including X-ray diffraction, optical transmittance in the range 250-1100 nm and transmission electron microscopy were used to analyze the nanostructured films. The crystalline order, morphology and optical responses were monitored as function of the deposition parameters and the post-synthesis annealing. The optimal conditions were found and allow realizing suitable nanostructured films with a major crystalline order of cubic phase for the In(2)O(3) nanocrystals. The optical properties of the films were analyzed and the key parameters such as direct and indirect band gaps were evaluated as function of the synthesis conditions and the crystalline quality of the films. (C) 2010 Elsevier B.V. All rights reserved.