This work reports about annealing time effect on structural and optical properties of pure and Dy 3 + -doped CeO2 nanocrystallites. The nanopowders with an average grain size 13–15 nm are successfully synthesized via a conducive and neoteric Pechini-type sol–gel technique. Surface morphology, composition, band gap and photoluminescence properties of the prepared samples are examined by multifarious characterization techniques like Rietveld refinement, FESEM, HRTEM, FTIR, UV–Vis spectroscopy and PL. The effects of annealing time on structural parameters including lattice parameter, bond distance, bond angle, strain, crystallite size and texture coefficient are computed for all prepared samples which are further ensured by Rietveld refinement. In absorption spectra, blue shift in the band gap of as-prepared samples has been observed due to well-known quantum size effect, however, red shift is noticed in further annealed samples. PL emission peaks are observed in violet, blue and green regions that are devoted to various defect levels and color centers such as F, F + , F + + , etc. It is suggested that defects like oxygen vacancies play vital role in tailoring the band gap of prepared samples and therefore enhance its utility in photonics and oxygen storage appliances. [ABSTRACT FROM AUTHOR]