Pure α-La(IO3)3 and α-La0.85Er0.15(IO3)3 nanocrystals were synthesized by a microwave-assisted hydrothermal method leading to a reaction yield of 87 ± 4%. Electron microscopy and dynamic light scattering characterizations provide evidence for the formation of nanocrystals with an average size of 45 ± 10 nm for α-La(IO3)3 and 55 ± 10 nm for α-La0.85Er0.15(IO3)3. When dispersed in ethylene glycol, the nanocrystal suspensions exhibit second-harmonic generation under near-infrared excitations at 800 and 980 nm whereas additional photoluminescence by up-conversion is simultaneously observed in the case of α-La0.85Er0.15(IO3)3 nanocrystals. Quantitative assessments of the second-harmonic generation efficiency from second-harmonic scattering experiments at 1064 nm result in relatively high ⟨ d⟩ coefficients measured at 8.2 ± 2.0 and 8.0 ± 2.0 pm V-1 for α-La(IO3)3 and α-La0.85Er0.15(IO3)3, respectively. The relative intensity between second-harmonic generation and photoluminescence is discussed following the excitation wavelength.