The aim of this research is to study photoluminescent properties and particularly energy transfer between Sm 3+ ions in LaF 3 nanocrystals because the energy transfer process has a significant effect on the luminescence efficiency and lifetime. Sm 3+-doped LaF 3 nanocrystals with 0.1, 0.2, 0.3, 1.0, 2.0, 3.0, 4.0 and 5.0 mol% Sm 3+ have been prepared by hydrothermal method. The obtained nanocrystals were characterized by X-ray diffraction, transmission electron microscopy, photoluminescence and luminescence decay measurement. The results showed that the LaF 3 :Sm 3+ nanocrystals possess hexagonal structure with 3 1 space group. The room temperature photoluminescence and photoluminescence excitation spectra of LaF 3 :Sm 3+ were investigated in detail and interpreted by optical intra-configurational f-f transitions within Sm 3+ ions. When Sm 3+ ion concentration in the nanocrystals is increased, the excitation energy is transferred from the "bulk" Sm 3+ ions to the surface Sm 3+ ions followed by non-radiative recombination at centers at the surface of the nanocrystals. The photoluminescence decay curves of 593 nm peak in the LaF 3 nanocrystals doped with 1.0-5.0 mol% Sm 3+ were best fitted to the Inokuti-Hirayama model with the dominant dipole-quadrupole interaction (S = 8). The values of fitting parameters for the energy transfer process were determined.