We report on successful preparation of Er 3+ doped transparent alumina (0.1-0.17 at. %) exhibiting visible light photoluminescence using wet shaping method and hot isostatic pressing. The effects of dopant amount, type of doping powder and powder pre-treatment on final microstructure, real in-line transmittance and photoluminescence characteristics were studied.The real in-line transmittance ranged between 28-56 %, depending on processing parameters.The transparency decreased with increased amount of dopant. The decrease is dependent on the type of doping powder and its pre-treatment.The photoluminescence spectra measured in both visible and NIR region showed typical emission bands due to the presence of Er 3+ ions. The decay profiles of the 4 S3/2→ 4 I15/2 transition were fitted with a 2-exponential function, with faster component in the range of 360-700 ns and slower component around 1.6-2.4 μs. The intensity of emissions and lifetime of the 4 S3/2 level decrease significantly with increasing concentration of Er 3+ ions.