The phase transition from hexagonal to cubic GaN has been observed upon pulsed-laser ablation of hexagonal GaN powders in a liquid at room temperature and ambient pressure. At the same time, GaN nanocrystals are synthesized through this hexagonal-to-cubic phase transition. Cathodoluminescence spectroscopy is employed to characterize the luminescence of the synthesized GaN nanocrystals. First-principle calculations are used to clarify the physical and chemical mechanisms of the phase transition from hexagonal to cubic GaN upon pulsed-laser induced solid–liquid interface reaction.