Nanosized and aggregated Y2O3:Eu Red phosphors were prepared by template method from metal salt impregnated into crystalline cellulose. The particle size and photoluminescent property of Y2O3:Eu red phosphors were controlled by variation of the calcination temperature and time. Dispersed nanosol was also obtained from the aggregated Y2O3:Eu Red phosphor under bead mill wet process. The dispersion property of the Y2O3:Eu nanosol was optimized by controlling the bead size, bead content ratio and milling time. The median particle size (D50) of Y2O3:Eu nanosol was found to be around 100 nm, and to be below 90 nm after centrifuging. In spite of the low photoluminescent properties of Y2O3:Eu nanosol, it was observed that the photoluminescent property recovered after re-calcination. The dispersion and photoluminescent properties of Y2O3:Eu nanosol were investigated using a particle size analyzer, FE-SEM, and a fluorescence spectrometer.