Eu-doped 70SiO-23HfO-7ZnO (mol%) glass-ceramic waveguides have been fabricated by sol-gel method as a function of heat-treatment temperatures for on-chip blue-light emitting source applications. Structural evolution of spherical ZnO and spherical as well as rod-like HfO nanocrystalline structures have been observed with heat-treatments at different temperatures. Initially, in the as-prepared samples at 900 C, both, Eu as well as Eu ions are found to be present in the ternary matrix. With controlled heat-treatments of up to 1000 C for 2 h, local environment of Eu-ions become more crystalline in nature and the reduction of Eu to Eu takes place in such ZnO/HfO crystalline environments. In these ternary glass-ceramic waveguides, heat-treated at higher temperatures, the blue-light emission characteristic, which is the signature of 4f 5d [Formula: see text] 4f energy level transition of Eu ions is found to be greatly enhanced. The as-prepared glass-ceramic waveguides exhibit a propagation loss of 0.4 ± 0.2 dB cm at 632.8 nm. Though the propagation losses increase with the growth of nanocrystals, the added functionalities achieved in the optimally heat-treated Eu-doped 70SiO-23HfO-7ZnO (mol%) waveguides, make them a viable functional optical material for the fabrication of on-chip blue-light emitting sources for integrated optic applications.