A series of Tb3+ and Bi3+ co-doped LaGaO3 nanophosphors were synthesized by using polyol route and also characterised for their uncovering energy transfer mechanism of photoluminescence. An excellent characteristic emission of Bi3+ and Tb3+ ions was observed with an appreciable increase in photoluminescence at certain doping concentration. Energy transfer (ET) mechanism from the host lattice to Bi3+ and Tb3+ ions in the co-doped nanophosphor has been explained. The ET efficiency has been calculated and found to be 69.53%. The CIE chromaticity of the synthesized LaGaO3: Bi3+, Tb3+ nanophosphors indicates that they could be a suitable material for field emission display and LED applications.