The current study focuses on the photocatalytic reduction of p‐nitrophenol using Europium, Yttrium and Lutetium doped Cerium oxide (CeO2) nanoparticles which were synthesized via chemical precipitation method. The synthesized nanoparticles were subjected to characterization using different analytical tools to confirm the formation of nanoparticles. They were characterized using X‐Ray diffraction (XRD) studies, Fourier Transform‐Infrared spectroscopy (FT‐IR), High resolution Scanning electron microscopy (HRSEM), High resolution Transmission electron microscopy (HRTEM), Energy dispersive X‐ray analysis (EDAX), X‐ray photoelectron spectroscopy (XPS), and UV‐Diffuse reflectance spectroscopy (UV‐DRS) studies. The synthesized rare earth nanomaterials were successfully applied for the photoreduction of the organic pollutant p‐nitrophenol with the addition of NaBH4 as reducing agent using 300 W Xenon lamp. The addition of the synthesized photocatalyst enhanced the reduction ability of NaBH4 in reducing p‐nitrophenol to p‐aminophenol. The results confirmed the superior photocatalytic activity of Lu0.05CeO2 compared to the other rare earth doped photocatalysts. The time taken by Lu0.05CeO2 photocatalyst for the complete reduction of p‐nitrophenol was 45 min and was found to be 96 % efficient in the reduction of 0.5 mM p‐nitrophenol to p‐aminophenol compared to the other photocatalysts.