ZnO nanocrystals (NCs) embedded in a BaF2 matrix have been prepared by a radio-frequency magnetron sputtering technique followed by a thermal annealing process from 400 to 1100 °C. X-ray diffraction results show that ZnO NCs with a hexagonal wurtzite structure are formed in a BaF2 matrix. The average grain sizes are estimated ranging from 7.5 to 33 nm, corresponding to fabricated samples annealed at temperatures from 400 to 800 °C. Photoluminescence showed a very strong ultraviolet near-band-edge (NBE) emission located in the 364–383 nm spectral region. The emission intensity is enhanced and the linewidth is narrowed as the annealing temperature increases. The intensity ratio of ultraviolet NBE emission to deep-level visible is also increased with annealing temperature indicating that deep-level defects in ZnO are suppressed.