Positron lifetime studies have been carried out on CaSO4:Dy phosphors with and without Teflon binder. The effect of Co‐60 gamma irradiation exposure in these samples has been investigated. Unexposed CaSO4:Dy embedded Teflon discs exhibited four lifetime components viz., 228, 755, 3865 and 77 ps with intensities of 62%, 18%, 14% and 6%, respectively. Since Teflon is used as a binder in these phosphors, the long lived components are understood to arise from this. Upon radiation exposure there is a clear change in these resolved lifetime components. To understand the variation of these lifetime components better, positron lifetime studies was carried out on pure CaSO4:Dy powder (without Teflon) as well as pure Teflon discs exposed to varying radiation doses. The variation of positron lifetime parameters of CaSO4:Dy powder showed systematics, ascribable to SO–4 ion formation due to γ‐ray exposure. (© 2009 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)