In this paper, we report low temperature solution combustion synthesis and characterization of rare earth oxide (Gd2O3) nanocrystalline phosphor. During the synthesis, glycine was used as a fuel. The final product was examined by well characterized techniques such as powder X-ray diffraction pattern (PXRD), UV-Visible absorption spectroscopy, photoluminescence (PL) measurements etc. The average crystallite size of the Gd2O3 nanophosphor was estimated using Scherrer's formula and found to be 36 nm. The UV-Visible absorption peaks observed at ~243 and ~305 nm. Further the band gap of 900 °C for 3 h calcined Gd2O3 nanophosphor were estimated by Wood and Tauc relation and it was found to be ~5.4 eV. A broad PL emission band at ~380 nm was observed at 230 nm excitation. According to Wang's proposal, this emission band may be attributed to recombination of a delocalized electron close to the conduction band with a single charged state of surface oxygen vacancy.