In this work, a new erbium (Er) doped nanoâengineered scandiumâphosphoâyttriaâaluminaâsilica (SPYAS) glassâbased optical fiber is reported, fabricated through the MCVD process, and solution doping technique, followed by a suitable thermal annealing of pristine preform. The fabrication process comprises the incorporation of erbium doped phaseâseparated scandiumâyttria rich crystalline nanoparticles into the core region through in situ process based on phaseâseparation and crystal growth phenomena. The material characterization results, obtained from transmission electron microscopy, electron diffraction pattern, energy dispersive Xâray, electron probe micro analysis, and Xâray fluorescence, confirm the formation of Er2O3 doped crystalline phaseâseparated scandiumâyttria rich nanoparticles in the core region. The formation of scandiumâultra rich nanoâcrystalline environment, possessing low photon energy around the erbium ions, enhanced the fluorescence intensity. Such kind of nanoâengineered glass reduces the noise figure around 4.35âdB, and provides broadband optical flat gain with an average value of 38.675âdB, varied by less than ±0. 7âdB spanning over a broad wavelength region of 1530â1590ânm compared to the pristine and Sc free Erâdoped fibers. Such kind of nanoâengineered glass based Er doped fiber will be useful for making highly efficient optical amplifiers, suitable for present broadband optical communication systems.