A kind of colloid mixed with Nd₂O₃nano-particles is introduced. The light scattering characteristics and the extinction coefficient are analyzed and simulated. When the Nd atom concentration is 1.386×10^-20 cm^-3, the radius of Nd₂O₃ nano-particles is about 5 nm and the relative refractive index is less than 1.25, the results show that the scattering loss of the laser colloid at 1064 nm wavelength is less than 0.002 cm-1. Therefore, the laser colloid with Nd₂O₃ nano-particles may be is a kind of excellent laser medium.