Gold nanoparticles dispersed Y2O3 films were prepared through a sol-gel method by using yttrium acetate and Au nanoparticles colloid as precursors. The films were characterized by X-ray diffraction (XRD), transmission electron microscopy (TEM) and UV-VIS absorption spectra. XRD patterns and TEM images of Y2O3+Au films give the same results on structure and particle size as that of pure Y2O3 films. The surface plasma resonance (SPR) of Au nanoparticles in Y2O3+Au film was observed around 550 nm in the absorption spectrum and its position shifts to red with increasing annealing temperature is caused by the increase of dielectric constant of Y2O3 matrix and the size of Au nanoparticles. The second and third order nonlinear optical effects of Y2O3+Au films were also observed. The photoluminescent properties of Y2O3:Eu+Au films were investigated and results indicate that there exist an energy transfer from Eu3+ to Au nanoparticles and this energy transfer decreases the emission of Eu3+ in Y2O3:Eu+Au film.