The nonlinear optical properties of In2O3 nanoparticles coated by a layer of organic molecules (DBS) in toluene sol and bare In2O3 nanoparticles in hydrosol have been studied in the transparency region by the Z-scan technique.It was found that the surface modification can enhance nonlinear response of In2O3 nanoparticles.The influences of pole effect resulting from surface modification on the optical nonlinearities of In2O3 nanoparticles were also investigated.