Low-coordinated surface elements on metal oxide nanoparticles represent the basis for a new concept of luminescent nanoparticles made of abundant, non-toxic, and thermally stable materials. This combined experimental and theoretical study describes the generation and stability of Ba-doped MgO nanoparticle surfaces and their optical absorption and luminescence dependence on Ba loading. It is demonstrated that the vapor phase growth process employed here represents a particularly robust synthesis approach for particle powders with reproducibly adjustable photoluminescence emission properties in the range between blue and yellow light. Moreover, this indepth characterization also provides an understanding of the electronic and optical characteristics of this nanoparticulate material with a so far unnoticed potential for solidstate light applications that are based on down conversion of UV light.