In recent years, multifunctional applications of the same material have gained wide recognition in various fields. The present study reports the synthesis, characterization, and multifunctional applications of europium (Eu)‐doped yttrium oxide (Y2O3) nanophosphor. Synergistic optimization of Eu‐doped Y2O3 results in enhanced photoluminescence (PL) and triboelectric nanogenerator (TENG) performance. Eu‐doped Y2O3 nanophosphors are synthesized using an autocombustion method, and comprehensive characterizations are conducted. The investigations indicate that the Eu doping significantly influences the PL intensity, with the highest emission observed at 3 mol% for powders. The synthesized nanophosphors are blended with silicone to fabricate hybrid films, which are utilized for energy harvesting applications using TENG technology. The TENG devices fabricated with these hybrid films demonstrate a notable relationship between the Eu concentration and the electrical output, achieving peak performance at 1 mol% Eu doping. The maximum output voltage of ≈535 V, short‐circuit current of ≈38 μA, and power density of 800 mW m−2 are observed. Further, TENG is demonstrated in a self‐powered UV photodetector application. The present results contribute to the improvement of sustainable energy technologies and open up a new window for multifunctional materials.