Mixed phase nanocrystalline titania are prepared by simple sol-gel method. The physico-chemical characteristics of the prepared nanoparticles are studied with X-ray diffraction, high-resolution transmission electron microscopy, RAMAN, BET, UV-Vis, steady state and time resolved photoluminescence. X-ray diffraction and Raman spectra clearly demarcate the anatase and rutile phase as both the phases give different diffraction patterns and Raman peaks. A comparison in the band gap indicates that pure anatase and rutile phase have band gap in the UV region, whereas a mixture of these phases has lower band gap and corresponds to the visible region. Steady state and time resolved photoluminescence are employed to understand the emissivity and carrier lifetime. The photocatalytic activity is evaluated by monitoring the degradation of phenol under visible light illumination. Due to the synergistic effect of mixed anatase and rutile phases, mixed phase nanocrystalline titania exhibit superior photocatalytic activity.