Solid-state lasers play a significant role in providing the technology necessary for active remote sensing of the atmosphere. Neodymium doped yttria (Nd:Y 2 O 3 ) is considered to be an attractive material due to its possible lasing wavelengths of ~914 nm and ~946 nm for ozone profiling. These wavelengths when frequency tripled can generate UV light at ~305 nm and ~315 nm, which is particularly useful for ozone sensing using differential absorption lidar technique. For practical realization of space based UV transmitter technology, ceramic Nd:Y 2 O 3 material is considered to possess great potential. A plasma melting and quenching method has been developed to produce Nd 3+ doped powders for consolidation into Nd:Y 2 O 3 ceramic laser materials. This far-from-equilibrium processing methodology allows higher levels of rare earth doping than can be achieved by equilibrium methods. The method comprises of two main steps: (a) plasma melting and quenching to generate dense, and homogeneous doped metastable powders, (b) pressure assisted consolidation of these powders by hot isostatic pressing to make dense nanocomposite ceramics. Using this process, several 1" x 1" ceramic cylinders have been produced. The infrared transmission of undoped Y 2 O 3 ceramics was as high as ~75% without anti-reflection coating. In the case of Nd:Y 2 O 3 ceramics infrared transmission values of ~50% were achieved. Furthermore, Nd:Y 2 O 3 samples with dopant concentrations of up to ~2 at. % were prepared without significant emission quenching.