Eu doped GaN powders have been produced by a low‐cost and high‐yield method. The effect of temperature on the optical properties and structure was investigated by photoluminescence, X‐ray diffraction and Raman spectroscopy. The effective Eu incorporation was extracted by a non‐destructive strain analysis correlating the Raman with the XRD data. Luminescence intensity was closely related to the effective Eu incorporation. The maximum Eu incorporation was determined to be 0.5 at% for the sample grown at 1000 °C, which showed the strongest red photoluminescence with the highest crystallinity. (© 2008 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)