The structural and optical properties of iron doped magnesium oxide nanophosphors (NPs) with composition Mg1-xO: Fex where x = 0, 0.1, 0.2, 0.3 and 0.4 mol% were synthesized via solution combustion method. Rietveld refinement of obtained XRD data confirms the cubic structure of synthesized samples. FTIR spectra show the presence of absorption bands associated with stretching vibrations of MgO along with Fe-O-Mg deformation vibrations. UV diffuse reflectance spectra of the pristine and gamma irradiated nanophosphors reveals that Fe as dopant reduces the band gap ‘Eg’ of nanophosphors. Photoluminescence emission spectra under excitation at 270 nm wavelength show broad emission centered at ∼ 398 nm and ∼ 485 nm which is attributed to surface defects mainly oxygen vacancies i.e. F2+, F and F+-centers and surface states of the host material. The optimum dopant concentration of Fe ion is found to be 0.2 mol % and CIE color coordinates (0.140, 0.062) located in the blue region advocates its applications in White LEDs. TL glow curves show that TL intensity of gamma exposed Nanophosphors decreases tremendously with increase in Fe doping. The kinetic parameters are estimated using peak shape method and obtained values reveals peaks exhibit 2nd order kinetics having trap depth ranging from 0.5845 to 3.0577 eV.