The issue of how to improve the thermoelectric figure of merit (ZT) in oxide semiconductors has been challenging for more than 20 years. In this work, we report an effective path to substantial reduction in thermal conductivity and increment in carrier concentration, and thus a remarkable enhancement in the ZT value is achieved. The ZT value of In2O3 system was enhanced 4-fold by nanostructuing (nano-grains and nano-inclusions) and point defect engineering. The introduction of point defects in In2O3 results in a glass-like thermal conductivity. The lattice thermal conductivity could be reduced by 60%, and extraordinary low lattice thermal conductivity (1.2 W m(-1) K(-1) @ 973 K) below the amorphous limit was achieved. Our work paves a path for enhancing the ZT in oxides by both the nanosturcturing and the point defect engineering for better phonon-glasses and electron-crystal (PGEC) materials.