We have succeeded in fabricating transparent nano‐structured ceramics by annealing of the amorphous phase obtained by the solidification of the eutectic melt in the ternary system HfO2− Al2O3− GdAlO3. The ceramics annealed at 1273 K for 6 hr contained 5‐10‐nm cubic hafnia grains, and those annealed at 1273 K for 72 hr contained both cubic hafnia and gadolinium aluminum garnet grains 5‐10 nm in size. They showed high transparency. Annealing at 1473 K, however, resulted in grain growths that brought about non‐transparency.