We report on waveguiding properties in epitaxial Er:Y2O3 films grown by pulsed-laser deposition on sapphire [0001] substrate. Characterization of the as-grown films by x-ray diffraction, atomic force microscopy, and Rutherford backscattering revealed that the films were highly crystalline and textured along the [111] direction and possessed an average surface roughness of 2 nm for a 0.69-mum-thick film. The investigation of the emission spectra confirms the proper structural position for the Er3+ ions in the Y2O3 matrix and that the films guide optical waves along the entire length (5 mm) of the film yielding a propagation loss of <1 dB/cm at 800 nm. (C) 2001 American Institute of Physics.