The present investigation describes the synthesis of luminescent terbium‐doped strontium aluminate nanoparticles emitting bright green light, which were synthesized through a solid‐state reaction method assisted by microwave radiation. Various samples containing different concentrations of Tb were synthesized, and an analysis of their structural and morphological features was conducted using powder x‐ray diffraction, Fourier transform infrared spectroscopy and field emission scanning electron microscopy. The band gaps of the samples were determined utilizing the Kubelka–Munk method. The quenching mechanism observed was identified to be due to dipole–dipole interaction using the Dexter theory. The optimized sample with a terbium concentration of 4 at.% has a luminescence lifetime of 1.05 ms with 20.62% quantum efficiency. The results of this study indicate that the terbium‐doped strontium aluminate fluorescent nanoparticles exhibit promising potential for a wide range of applications, including bioimaging, sensing and solid‐state lighting.