Combustion based synthesis of AlN nanoparticles using the "solid nitrogen" promotion reaction was investigated in Al2O3 + 3Mg system in nitrogen atmosphere. A controlled amount of Mg + 0.5NH(4)Cl mixture as a solid source of nitrogen was blended with the A(l)2O(3) + 3Mg starting system and the synthesis reaction of AlN nanoparticles was conducted using the exothermic heat of the entire reaction system. The resulting AlN nanoparticles were characterized by X-ray diffraction (XRD), Raman and Fourier transform infrared spectroscopy (FTIR), PL spectroscopy, field-emission scanning electron microscopy, transmission electron microscopy, and Brunauer-Emmett-Teller surface area techniques. The analysis results confirmed that single phase and crystalline AlN nanoparticles with an average size of 50-500 nm were obtained from the developed approach. Photoluminescence spectra of AlN nanopowders under the excitation of 230-270 nm UV light revealed that AlN emits yellow-red light having a wavelength near to 590 nm. The chemistry of the combustion process is discussed and the basic reactions that led to the formation of AlN are presented.