Thermally stable titanium dioxide nanoparticles (TiO2 NPs) doped with erbium ions (Er3+) are characterized by uniformity, low excitation energy, and high surface area. The impregnation methodology was used to enhance the optical properties of TiO2 NPs impregnated with various Er3+ ion contents. The synthesized Er3+/TiO2 samples were characterized by energy dispersive X-ray (EDX), metal mapping, UV–Visible spectrum, field emission scanning electron microscopy (FESEM), and X-ray diffraction (XRD). The Er3+ ions, per our findings, were well-distributed on the TiO2 surface of the anatase phase and there was an insignificant difference in particle size, but there was no change in the particle shapes of the Er3+/TiO2 NPs structure. The maximum band gap degradation occurred with 1.8 wt % of Er3+/TiO2, where the energy gap degraded from 3.13 to 2.63 eV for intrinsic TiO2. The synthesized Er3+/TiO2 samples possess predominantly finely dispersed erbium ion species on the surface. Er3+ ions agglomeration on the surface increased with increasing ions in each sample. We found that 0.6 wt/vol % of Er+3/TiO2 is the best optical coating and produced satisfying results in terms of blocking the transmittance of blue wavelength without reducing the image quality.