In this paper, europium-doped gadolinium phosphor, which is a potentially bifunctional material with both fluorescent and magnetic properties, has been prepared in a one-step procedure via flame spray pyrolysis, and its crystal structure, morphology, and PL intensity were investigated. All the prepared phosphors were submicron-sized with spherical shapes and either a pure cubic or pure monoclinic phase. In order to observe the effects of temperature on the crystal phases of the prepared phosphors, we applied a H₂ vs. N₂/O₂ diffusion flame, with the maximum flame temperature ranging from T_max=1375 to 2050K. The temperature profiles under various flame conditions are also reported herein to further elucidate the rapid synthesis process. The PL intensity in the cubic phase improved linearly with increasing flame temperature until the transition to a monoclinic phase. The peak of the photoluminescence(PL) spectrum from the phosphors prepared at T_max=1733K in the cubic phase was narrower and twice as strong as the peak of the PL spectrum from the phosphors prepared at T_max=2050K in the monoclinic phase. This paper provides important data showing the relationship between the synthesis temperature and the phase transition in Gd₂O₃:Eu in the continuous one-step use of flame spray pyrolysis.