Microwave-assisted combustion synthesis approach was adopted to prepare sodium yttrium fluoride doped with erbium (NaYF4: Er3+) nanoparticles. Powder x-ray diffraction study confirmed the formation of mixed phase of NaY1-xF4: xEr3+ (x = 1, 3, 5, 7 and 9 mol%) sample with cubic and hexagonal phases (predominant). Three characteristic emission peaks appearing at 526, 546 and 670 nm were attributed to the transitions 2H11/2, 4S3/2 and 4F9/2 to 4I15/2 respectively which are characteristic emissions of Er3+ ions when excited with 980 nm radiation. The optimal dopant concentration was determined as 7 mol% of Er3+ ions in yellowish-green region, and the asymmetric ratio was also calculated. The synthesized up-converting sample follows two-photon process for excitation which was confirmed by power law by varying pump-power in the range of 49â143 mW. The thermally and non-thermally coupled levels attributed to the transitions (2H11/2 and 4S3/2), (2H11/2 and 4F9/2) of Er3+ ions were employed to study the temperature sensing which was recorded in 300â550 K and the relative sensitivities were evaluated to be 0.92 and 0.58 %Kâ1 correspondingly. The significant thermal sensitivity of the synthesized phosphor materials promises its possibility in optical thermometry applications. The synthesized sample when excited with 980 nm laser radiation produced emission in the visible region which facilitates the utilization of sample as infrared (IR) detector. In the purview of solid-state lighting, the luminous efficiency and luminous efficacy of radiation were evaluated as 23.57 % and 161 lm/Wop respectively. The optical thermometry, IR detection and light generation capabilities of the hexagonal-phased sodium yttrium fluoride doped with erbium (NYF:Er) ions are demonstrated with the obtained results.