In the present work, Gd₂O₃:4mol%Eu were synthesized via co-precipitation route. The concentration of Eu ions was fixed to avoid the chances of concentration quenching. The effect of cationic surfactants (CTAB, DTAC), anionic surfactants (SDS, SDBS) and non-ionic (PEG, PVP) surfactants on the morphological, structural and luminescent properties have been studied in detail. The as-synthesized phosphors were characterized by X-ray diffraction technique, Field emission scanning electron microscopy, Fourier transformed infrared spectroscopy, UV-Vis spectroscopy, Vibrating sample magnetometer, and photoluminescence technique. All the as-synthesized phosphors were illuminated under UV excitation at 254 nm and emitted red emission at 612 nm which is characteristic of Eu ions. The addition of surfactants alter the morphologies but did not alter the crystal structure. The as-prepared phosphors are expected to be promising candidates for bio-medical applications, contrast agents and bio-sensors.