A series of Hf, Er co-doped LiNbO3 crystals were grown by Czochralski technique with 1 mol% of Er2O3 and with 2, 4, 6 and 8 mol% of HfO2, respectively. The optical damage resistance of Hf:Er:LiNbO3 crystals was studied by the transmitted beam pattern distortion method. The optical damage resistance of Hf (6 mol%): Er:LiNbO3 crystals is about two orders of magnitude higher than that in Hf:Er:LiNbO3. The X-ray power diffraction, the ultraviolet-visible absorption spectra and the infrared absorption spectrum were measured and discussed in terms of the spectrometric characterization and the defect structure of crystals. The results showed that with mild co-doping with HfO2, Er3+ substitutes Nb5+, whereas with heavy co-doping, a part of Er3+ substitutes Li+. The structure defects were discussed in this paper to explain the improvement of the optical damage resistance in the Hf:Er:LiNbO3.