Y_2O_3:Eu~(3+) phosphors were synthesized by the surface diffusion method (SDM). X-ray diffractometry (XRD), scanning electron microscopy (SEM), and energy dispersive spectrometry (EDS) were used to characterize the structure, morphology and component of Y_2O_3:Eu~(3+) phosphors. The photoluminescent (PL) properties were also investigated. The results reveal that the PL intensity of Y_2O_3:Eu~(3+) phosphors prepared by the surface diffusion method (SDM) is much higher than that prepared by homogeneous co-precipitation. The luminescence efficiency of the sample (Y_(0.997), Eu_(0.003_)_2O_3 prepared by the SDM is almost 1.9 times that by homogeneous co-precipitation. The concentration of Eu~(3+) in the phosphor Y_2O_3:Eu~(3+) prepared by the surface diffusion can be reduced greatly owing to the activator, Eu~(3+) ions, distributing mainly in the outer layer of the phosphors where the photon generation process occurs.