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Rare earth sesquioxide nanoparticles have been immensely used in wide range of diverse photoluminescent applications. In the present investigation, we report a simple and less expensive technique of synthesizing pure and doped Nd2O3 nanocrystalline powders using combustion method. Powder X-ray diffraction analysis was done to study the structural characterization of the prepared samples. The surface morphology of the prepared samples was studied with the help of SEM analysis. The surface micrographs showed small amount of agglomeration. The UV-Vis data analysis and photoluminescence studies were carried out to understand the optical properties of the samples. On doping the optical properties of the synthesized samples were enhanced, and these properties revealed that they can be promising materials for LED applications.