Aluminum doped zinc oxide (AZO) particles having 3.2 ± 0.4 nm size were synthesized by hydrothermal method from aluminum nitrate, aluminum sec-butoxide and zinc nitrate by using alcohol as solvent. Single phase crystalline AZO particles could be obtained when alcohol/Zn(NO3)2 ratio was equal to or higher than 35, HCl/Zn(NO3)2 ratio was 0.2, and reaction temperature was 225 C. The amphiphilic character of the synthesized powders renders their dispersion possible in both polar and non-polar media. The obtained powders have the potential to be utilized as thin films for optical or electronical purposes