Hydrothermally prepared potassium niobate (KNbO3) nanoparticles are characterized meticulously to explore various crystallographic, microstructural, morphological, optical, compositional, and lattice‐vibrational properties. Laser power‐dependent Raman spectroscopy is employed to study the Fano effect in asymmetrically broadened optic (LO/TO) phonon modes in the orthorhombic KNbO3 system, considering interference with the interband electronic continuum. The phonon softening, alterations in charge‐phonon coupling constant, linewidth and lifetime of phonon modes, and so on are explained in the light of theories formulated by Fano, Allen, and Hui, accompanying factor group analysis of the Raman‐active modes. Under local heating via focused laser irradiation, highly sensitive Raman spectra introspect perturbations in the generic vibrations at the first Brillouin zone center and moderations in the constructive/destructive interference conditions of resonant Fano scattering. Density functional theory (DFT)‐based calculations on phonon dispersion, density of phonon states, and relevant thermodynamic attributes decipher the theoretical background. Amid photoexcited electron plasma, the charge‐phonon coupling for distinct modes is strengthened considerably against strong excitation intensity without any unwanted anharmonicity, extensive lattice thermal expansion, phonon decay, or microscopic phase transformation. Finally, the direction of asymmetry, particle–particle, and particle–quasiparticle interactions are illustrated using Feynman diagrams for the associated
A1 and
B1 phonon modes.