Er-dispersed silicon-rich silicon oxide (SRSO:Er) films have been fabricated by pulsed laser ablation technique. After deposition, the films were annealed in Ar ambient at different temperatures for 30 min to generate SiO2 films containing Si nanocrystals (Si-nc) and Er ions. The relationship between Er photoluminescence (PL) intensity and annealing temperature was investigated by PL spectrums analysis at room temperature. Transmission Electron Microscopy (TEM) and Energy Dispersive X-ray Spectrometer (EDS) were used to observe the samples. Experimental results show that high-density Si-nc generate when the annealing temperature increases to 1000°C, however, PL intensity of Er decreases due to Er atoms segregated out in SiO2 film and formed large particles.