The integration of nanoparticles has high potential in technological applications and opens up possibilities of the development of new devices. Compared to the conventional floating gate memory, a structure containing nanocrystals embedded in dielectrics shows high potential to produce a memory with high endurance, low operating voltage, fast write-erase speeds and better immunity to soft errors [S. Tiwari, F. Rana, H. Hanafi et al. 1996 Appl.Phys. Lett. 68, 1377]. A significant improvement on data retention [J. J. Lee, X. Wang et al. 2003 Proceedings of the VLSI Technol. Symposium, p33] can be observed when discrete nanodots are used instead of continuous floating gate as charge storage nodes because local defect related leakage can be reduced efficiently. Furthermore, using a high-k dielectric in place of the conventional SiO2 based dielectric, nanodots flash memory is able to achieve significantly improved programming efficiency and data retention [A. Thean and J. -P. Leburton, 2002 IEEE Potentials 21, 35; D. W. Kim, T. Kim and S. K. Banerjee, 2003 IEEE Trans. Electron Devices 50, 1823]. We have recently successfully developed a method to produce nanodots embedded in high-k gate dielectrics [C. L. Yuan, P. Darmawan, Y. Setiawan and P. S. Lee, 2006 Electrochemical and Solid-State Letters 9, F53; C. L. Yuan, P. Darmawan, Y. Setiawan and P. S. Lee, 2006 Europhys. Lett. 74, 177]. In this paper, we fabricated the memory structure of Al2O3 nanocrystals embedded in amorphous Lu2O3 high k dielectric using pulsed laser ablation. The mean size and density of the Al2O3 nanocrystals are estimated to be about 5 nm and 7x1011 cm−2, respectively. Good electrical performances in terms of large memory window and good data retention were observed. Our preparation method is simple, fast and economical.