For the first time green route method was used to synthesize pure and Mg²⁺ (1-11 mol%) doped Y₂O₃ nanophosphors by using Aloe vera leaves extract as a fuel. The final product was well characterized by powder X-ray diffraction (PXRD), scanning electron microscopy (SEM), transmission electron microscopy (TEM) and diffuse reflectance spectroscopy (DRS). The PXRD pattern reveal that the formation of single phase, cubic structure of Y₂O₃ with crystallite sizes ~25 nm. The SEM results showed porous and agglomerated structures. TEM images showed the crystallite size of the material and were found to be around ~ 25 nm. DRS studies revealed that the band gap of the nanophosphors was found to be around 5.82 to 5.87 eV.