Erbium-trioxide (Er2O3) and magnesium oxide (MgO) nanocomposite were effectively synthesized in the form of crystalline powder using a microwave irradiation approach. Various techniques were employed for identifying crystalline structure, FTIR fingerprint region, fluorescence emission behaviors, and surface morphology, dielectric, and magnetic properties using PXRD, FTIR spectroscopy technique, fluorescence spectroscopic technique, SEM analysis, frequency vs. dielectric constant, and MH curve analysis, respectively. Confirmation of the metal-oxygen bond such as Er2O3, and MgO was established through the analysis of stretching frequencies in the FTIR spectrum. The PXRD results using Rietveld refinement confirmed the crystalline nature of the synthesized nanoparticles, consisting of Er2O3, and MgO with unit cell compositions ~ 94.12 and ~ 5.88%, respectively. SEM imaging provided insights into the morphology of the particles, revealing a spherical shape with noticeable agglomeration. The elemental compositions such as Erbium (Er) and Oxygen (O), were validated by the EDS spectrum, confirming the successful achievement of Er2O3, and MgO nanoparticle in the synthesized composite. In addition, the vibrating sample magnetometer (VSM) graph illustrated the paramagnetic behavior of the doped Er2O3/MgO composite at room temperature. The thorough examination of the synthesized Er-MgO NPs, covering structural, morphological, and magnetic characteristics, contributes to a comprehensive understanding of their properties.