$Eu^{3+}$ doped $YGdO_3$ phosphors particles which have fine size and narrow size distribution with non aggregated uniform morphology were prepared by solvent evaporation method for the improvement of emission efficiency. Several parameters have been investigated in this study such as the influences of composition ratio of host materials, calcination temperature, amount of activator, surfactant, pH and flux on the photoluminescence intensity, particle size and dispersion. $Eu^{3+}$ doped $YGdO_3$ phosphor presented a strong narrow band emission peak at 612nm. The maximum emission intensity of$YGdO_3:Eu^{3+}$ occurred when $Eu^{3+}$ concentration is 3wt% under vacuum ultra violet excitation. Prepared phosphors were found to have small round-shaped particles about 150nm in size. The addition of PVA as a surfactant inhibits the grain growth and the agglomeration of particles efficiently by reducing the oxygen bridge bonds. As the pH reduces, PL intensity increase due to reducing the formation of oxygen bridge bonds. The particles prepared from solvent evaporation method with 5wt% LiCl were found to have 120% PL intensity compare to particles prepared without LiCl flux.