$Y_2O_3:Eu^{3+}$ and Li-doped $Y_2O_3:Eu^{3+}$ thin films have been grown on sapphire substrates using a pulsed laser deposition technique. The thin film phosphors were deposited at a substrate temperature of $600^{circ}C$ under the oxygen pressure of 100, 200 and 300 mTorr. The films grown under different deposition conditions have been characterized using microstructural and luminescent measurements. The crystallinity and photoluminescence (PL) of the films are highly dependent on the oxygen pressure. The PL brightness data obtained from $Y_2O_3:Eu^{3+}$ films grown under optimized conditions have indicated that sapphire is one of the most promising substrate for the growth of high quality $Y_2O_3:Eu^{3+}$ thin film red phosphor. In particular, the incorporation of $Li^{+}$ ions into $Y_2O_3$ lattice could induce a remarkable increase of PL. The highest emission intensity was observed with LiF-doped $Y_{1.84}Li_{0.08}Eu_{0.08}O_3(Y_2O_3LiEu)$, whose brightness was increased by a factor of 2.7 in comparison with that of $Y_2O_3:Eu^{3+}$ films. This phosphor may promise for application to the flat panel displays.