Based on XRD, Sn-119 MAS NMR and Luminescence studies it is confirmed that in very fine nanoparticles of Y2Sn2O7, tin environment is significantly distorted with respect to bulk Y2Sn2O7. NMR studies revealed that electron density around Sn4+ is significantly high in nanoparticles in comparison to bulk. Theoretical studies under DFT formalism has further confirmed that electron density around Sn4+ ions is enriched, as well as distorted in Y2Sn2O7 nanoparticles compared to bulk. The higher electron density around Sn4+ ions has been attributed to elongation in Sn-O bond distance which results in relatively poor charge transfer from tin site to oxygen. (C) 2013 Elsevier B. V. All rights reserved.