A peptizing-hydrothermal method to prepare nanometer γ-AlOOH crystal powder with industrial Al(OH)3 as raw materials has been proposed in the present paper. The XRD and TEM results show the product is a pure γ type nanometer AlOOH crystal powder with average grain diameter of 70nm. Laser grading analysis indicates the average grain diameters of the product in the solution are 66.52nm in water and 84.33nm in N,N-dimethylformamide, respectively without surface modification and dispersant. The experimental result indicated that polymer/inorganic nano-composite with high content of nanometer AlOOH presents inorganic characteristic of polymer. The wear rate of the alumina ceramic ball sintered at 1465°C from ceramic, which contains 98 % alumina (wt), can be reduced up to 40% with addition of 3.5% nanometer AlOOH.