Nd
3+
‐doped near‐infrared (NIR) luminescent nanocrystals (NCs) have shown great promise in various bioapplications. A fundamental understanding of the electronic structures of Nd
3+
in NCs is of vital importance for discovering novel Nd
3+
‐activated luminescent nanoprobes and exploring their new applications. Herein, the electronic structures of Nd
3+
in LiLuF
4
NCs are unraveled by means of low‐temperature and high‐resolution optical spectroscopy. The photoactive site symmetry of Nd
3+
in LiLuF
4
NCs and its crystal‐field (CF) transition lines in the NIR region of interest are identified. By taking advantage of the well‐resolved and sharp CF transition lines of Nd
3+
, the application of LiLuF
4
:Nd
3+
NCs as sensitive NIR‐to‐NIR luminescent nanoprobes for ratiometric detection of cryogenic temperature with a linear range of 77–275 K is demonstrated. These findings reveal the great potential of LiLuF
4
:Nd
3+
NCs in temperature sensing and also lay a foundation for future design of efficient Nd
3+
‐based luminescent nanoprobes.