The textured and amorphous thin waveguiding films of Nd/YAlO3 (Nd/YAP), were directly deposited on (0001) and (1 (1) over bar 02) sapphire substrates by a pulse laser ablation technique. The structural properties of the samples were characterised by X-ray diffraction and electron microprobe analyses. A strong dependence of crystalline structure and stoichiometry of the films on oxygen pressure was found. Luminescence around 1070 nm wavelength region was observed. Further excitation spectra were measured by means of a tuneable Ti-sapphire laser with a wavelength of approximately 800 nm and the fluorescence was observed at 1070 nm, The fluorescence decay constant was determined as 185 +/- 5 mu s The refractive indices of the him in the range 1.8134-1.8244 at 1064 nm have been measured by the m-line technique. The increase of the films refractive index by Delta n = 8 x 10(-3) at 1064 nm wavelength was observed with the change of dopant Nd concentration of 0.16%. Waveguiding losses lower than 1 dB/cm have been demonstrated at 1.06 mu m wavelength.