The organic phase containing tetra(2-ethylhexy)diglycolamide (TEHDGA) and n-dodecane (n-DD) was irradiated to various absorbed dose levels in a 60Co gamma irradiation chamber. The organic phase subjected to irradiation was classified in to four different categories. The extraction behavior of Nd(III) from nitric acid was studied in the degraded solution of 0.2 M TEHDGA/n-DD and the reverse micellar aggregation behavior of the extracted phase was probed by dynamic light scattering technique and ATR-FTIR spectroscopy. The results revealed that the concentration of TEHDGA decreased upon irradiation and minimized the aggregation in organic phase. The presence of n-DD along with TEHDGA during irradiation enhanced the degradation of TEHDGA, due to sensitization effect. In contrast to the assumption of deteriorating effect of gamma radiation on organic phases, the study showed that the radiolytic degradation of TEHDGA/n-dodecane minimized the aggregation and threw the third phase formation limit of Nd(III) in aqueous phase to higher values.