Terbium doped yttrium oxide (Y2O3:Tb3+) nanophosphor has been synthesized via a facial yet modified co-precipitation method. To get maximum luminescence output from Y2O3:Tb3+nanophosphors, surfactants namely, Cetyl trimethylammonium bromide (CTAB) and Trioctylphosphine oxide (TOPO) were added during synthesis. Further, it has been observed that combined addition of surfactant (CTAB�+�TOPO) at the time of synthesis has resulted in nearly spherical morphology of the nanophosphor. Furthermore, these optimized material are observed to have enhanced integrated photoluminescence (PL) intensity of ∼23% as compared to the one synthesized without the addition of any surfactant. The results are further supported by detailed structural and optical studies. Optimum use of surfactants during synthesis shows for the first time that both nano-sized distribution and high crystallinity can be achieved simultaneously which has resulted in bright green emission in Tb3+doped Y2O3nanophosphors.