PurposeThe purpose of this paper is to evaluate the effect of copolymer and starting material concentrations in homogeneous precipitation synthesis of Yttria nanoparticles and red‐emitting nanophosphors Y2O3:Eu3+. N‐isopropylacrylamide and acrylic acid (NIPAM/AAc) and urea are used.Design/methodology/approachTo optimise synthesis condition of Y2O3:Eu3+ nanophosphor NIPAM/AAc copolymer was used as a modifier and the effect of various concentration of yttrium ions, urea and precipitation time on size, morphology and emission spectra were investigated.FindingsUsing NIPAM/AAc copolymer shows significant improvement on size and dispersion of nanoparticles. It is found that yttrium concentration, varying between 0.006 and 0.03 M, has a profound impact on the average size of particles, which systematically increases from 65 to over 165 nm. The rate of precipitation reaction, however, is shown to be independent of yttrium concentration. In contrast, as urea concentration increases from 0.2 to 5 M, the average particle size exhibits a gradual decrease from 183 to 70 nm. At extremely high urea concentration such as 5 M, a significant level of inter‐particle agglomeration is observed.Originality/valueBased on this paper, the authors have successfully prepared some promising nanophosphors. The nanoparticles are studied by X‐ray diffraction, transmission electronic microscopy, zeta sizer, Infra red and photoluminescence spectroscopy.