In current study, various amounts of MgO single dopant was adopted to fabricated high quality transparent YAG ceramics, by utilizing a simple one-step solid state reaction sintering method in vacuum. At a MgO doping amount of only 0.03 wt.%, YAG transparent ceramics with a transmittance of 84.5% at 1064 nm could be obtained, after sintering at 1820 °C for 8 h. The microstructure evolution and optical property of as-fabricated YAG ceramics as a function of MgO doping concentration were systematically investigated. MgO dopant could effectively promote densification of YAG ceramics when the sintering temperature was lower than 1660 °C, and dramatically accelerate its grain growth between 1540 °C and 1660 °C. Further increase the doping amount of MgO would not benefit to the optical quality of YAG ceramics, and the intragranular pores as well as the Mg-riched secondary phase were observed from the MgO heavily doped ceramics.