Abstract: Optical properties, spectral dependence of photoconductivity and photoconductivity decay in nanocrystalline indium oxide In2O3 are studied. A number of nanostructured In2O3 samples with various nanocrystals size are prepared by sol-gel method and characterized using various techniques. The mean nanocrystals size varies from 7 to 8 nm to 39-41 nm depending on the preparation conditions. Structural characterization of the In2O3 samples is performed by means of transmission electron microscopy and X-ray powder diffraction. The combined analysis of ultraviolet-visible absorption spectroscopy and diffuse reflectance spectroscopy shows that nanostructuring leads to the change in optical band gap: optical band gap of the In2O3 samples (with an average nanocrystal size from 7 to 41 nm) is equal to 2.8 eV. We find out the correlation between spectral dependence of photoconductivity and optical properties of nanocrystalline In2O3: sharp increase in photoconductivity was observed to begin at 2.8 eV that is equal to the optical bandgap in the In2O3 samples, and reached its maximum at 3.2-3.3 eV. The combined analysis of the slow photoconductivity decay in air, vacuum and argon, that was accurately fitted by a stretched-exponential function, and electron paramagnetic resonance (EPR) measurements shows that the kinetics of photoconductivity decay is strongly depended on the presence of oxygen molecules in the ambient of In2O3 nanocrystals. There is the quantitative correlation between EPR and photoconductivity data. Based on the obtained data we propose the model clearing up the phenomenon of permanent photoconductivity decay in nanocrystalline In2O3. (C) 2015 Elsevier B.V. All rights reserved.