The nanosized pure and europium doped Sr0.5Ba0.5Nb2O6 ceramic systems have been synthesized by an aqueous organic gel route. The systems have been characterized for their structure by XRD. Particle morphology and size of the powder has been examined using SEM and TEM. The transmission electron microscopy images illustrate that the pure system powders consist of spherical particles with average size of 45 nm and europium doped system powders consist of nano rods with average size of 25 nm. Under UV light excitation, the Sr0.5Ba0.5Nb2O6 ceramic powder exhibited a blue emission band with a maximum at 440 nm. By doping with Eu3+, orange red emitting phosphor rods can be realized. Luminescence measurements of europium doped system are assigned to the 4f-4f transitions of europium ions in the Strontium Barium Niobate host lattice. The nonlinear absorption behavior of nanosized europium doped Strontium Barium Niobate ceramic system has been investigated employing the open aperture Z-scan experiment using 532 nm, 5 ns laser pulses.