Nd:BaF2 nanoparticles have been prepared via co‐precipitation and a pumping filtration wash method. The phase composition and morphology of the synthesized nanoparticles were investigated by X‐Ray Diffraction (XRD) and Field Emission Scanning Electron Microscopy (FE‐SEM) analyses, respectively. SEM observations revealed the powder's particle size to be approximately 100‐200 nm after calcination at 600°C for 5 hours in Ar. The transparent Nd:BaF2 ceramics were then fabricated by the one‐step vacuum sintering method at a temperature of 1200°C for 10 hours. SEM observations of the polished and thermally etched cross sections of the sintered ceramic revealed a highly homogenous microstructure with average grain size of 420 μm. Optical property characterization revealed that the transmittance of the ceramic reaches a maximum of ~70% in the infrared wavelength range, and an emission peak located at 1058 nm, excited by 808 nm light.