For potential gamma ray dosimetry and near-infrared laser material applications, solution combustion synthesis was used to create undoped and trivalent neodymium doped Y2O3. X-ray powder diffraction was used to analyze the annealed materials. It was discovered that they had a cubic Y2O3 single phase structure up to a dopant level of 2 mol%. The higher dopant concentrations showed the existence of a Nd2O3 solid solution. The crystallite sizes were determined using Scherrer and Williamson-Hall equations and were found to decrease with dopant content. Characterization of the nanocrystals by X-ray photoelectron spectroscopy confirmed excellent stoichiometric control. The γ-ray irradiated phosphors showed a thermoluminescence (TL) peak at about 394 K that sub linearly increased in intensity up to 7 kGy and thereafter decreased. A computerized glow curve deconvolution algorithm was used to analyze the measured complex TL glow curves produced for the phosphors exposed to γ-rays. The 60Co γ-ray irradiated Nd3+ doped Y2O3 sample exhibited peaks at 395, 445, 496 and 596 K with the corresponding activation energies in the range of 1.20-1.32 eV. These were attributed to the F, F+ and V-centers. The main absorption bands, i.e., at 590 and 812 nm for the Nd:Y2O3 nanocrystals. As the host's Nd3+ content increased, the optical band gap decreased. Three major emission bands at wavelengths of 871–957, 1045–1137, and 1306–1379 nm were associated with Nd3+ transitions of 4F3/2→4I9/3, 4F3/2→4I11/3 and 4F3/2→4I13/3, According to calculations, the 4F3/2 energy level's PL lifespan for Nd3+ doped Y2O3was between 68 and 247 µs.