Infrared transparent windows found applications in strategic space and defence missions. Cubic Y2O3 is a potential infrared transparent candidate due to its large infrared cut-off, high corrosion resistance, absence of birefringence, high mechanical strength, high thermal stability and low emissivity at elevated temperatures.A modified combustion synthesis was effectively utilised to synthesise nanostructured Nd0.3Y1.7O3. By susceptor assisted microwave heating the sample was sintered to 98.6% of the theoretical density at 1510oC for a soaking duration of just 20 minutes without the application of pressure or sintering additives. The reduced grain size of 0.53 0.01 µm achieved by the susceptor assisted sintering technique is a remarkable result in the fabrication of high quality infrared transparent windows. The high load independent hardness of 8.21 GPa attributes to the reduction in grain size achieved by the microwave sintering.