The process of Tb$_{2}$Hf$_{2}$O$_{7}$ nanocrystals formation upon annealing to 1600°C was investigated by means of X-ray absorption fine structure (XAFS) spectroscopy combined with X-ray diffraction (XRD) and pair distribution function (PDF) analysis. The structure ordering and the growth of nanocrystals upon annealing were estimated independently from XRD patterns and PDF. The probable content of Tb$^{4+}$ ions in Tb$_{2}$Hf$_{2}$O$_{7}$ was estimated from XANES. All studies indicate a high disorder and a large number of local structure defects in Tb$_{2}$Hf$_{2}$O$_{7}$ pyrochlore oxide.