A novel biobased pickering emulsion (PE) material was prepared by the encapsulation of Cyanex 923 (Cy923) into chitosan (CS) to selectively recover rare earth elements (REEs) from the aqueous phase. The preparation of PE was optimized through sequentially applying a 2 3 full factorial design, followed by a 3 3 Box− Behnken design varying the Cy923 content, CS concentration, and pH of CS. The material was characterized by Fourier transform infrared (FTIR) spectroscopy, scanning electron microscopy (SEM), optical microscopy, rheological, compositional, and stability measurements. The resultant material was evaluated in the removal of yttrium by pH influence, nitrate concentration, kinetics, equilibrium isotherms, reusability, and a comparison with liquid−liquid (L−L) extraction and tested in a real scenario to extract Y from a fluorescent lamp powder waste. In addition, the selectivity of PE for REE was investigated with Y/Ca, Gd/Ca, and La/Ni systems. PE extracts REE at 1 ≤ pH ≤ 5 at nitrate concentrations up to 2 mol/L. The kinetics and equilibrium studies showed reaction times <5 min and a maximum sorption capacity of 89.98 mg/g. Compared with L−L extraction, PE consumed 48% less Cy923 without using organic diluents. PE showed a remarkable selectivity for REE in the systems evaluated, showing separation factors of 22.62, 9.35, and 504.64 for the blends Y/Ca, Gd/Ca/Mg, and La/Ni, respectively. PE showed excellent selectivity extracting Y from a real aqueous liquor from the fluorescent lamp powder. PE demonstrates to be an effective and sustainable alternative for REE recovering due to its excellent efficiency in harsh conditions, favorable green chemistry metrics, and use of a biopolymer material in its composition avoiding the use of organic solvents used in L−L extraction.