AIN nanowires with a hexagonal structure were synthesized using an improved arc-discharge method and their microstructures were characterized using a high-resolution transmission electron microscope. The synthesized AIN nanowires were of various shapes. Their diameters ranged from 20 to 110 nm and the lengths were up to 20μm. Most of the AIN nanowires were coated by an amorphous layer of aluminum oxide. Fabrication yield was about several grams. The growth mechanism was considered to be a vapor-liquid-solid process and an Al droplet formed on the top of as-grown AIN nanowire played a role of catalyst.