Using a novel combustion method, Eu-doped Eu:yttrium aluminum garnet (YAG) and Eu:YSAG powders, and transparent Eu:YSAG ceramics were fabricated. The optical properties of these transparent ceramics have been measured, and a reduced peak splitting of Eu3+ for D-5(0)-> F-7(1) and D-5(0)-> F-7(2) was observed when 10 at.% Al3+ was substituted by Sc3+. The enhanced symmetry of the Eu sites in YAG lattice, which resulted from the expanded YSAG lattice by Sc3+ doping, is the main reason for the reduced peak splitting.