Barium molybdate nanoparticles exhibiting up-conversion luminescence were synthesized via the solvothermal method. Analysis revealed a prominent signal corresponding to the (112) plane in the XRD pattern, indicating the tetragonal structure of the synthesized nanoparticles. Raman spectroscopy detected the symmetric stretching frequencies of MoO4. When excited at 980 nm, the nanoparticles emitted a green spectrum with peaks at 532 and 553 nm. The luminescence intensity varied with the excitation light source, supporting the mechanism involving energy transfer from Yb-doped Er ions via the two-photon effect of the up-conversion phosphor. Moreover, the synthesized nanoparticles exhibited diminished luminous intensity with increasing temperature, suggesting potential for flexible composite sensor fabrication. Integration with a 980 nm LED chip yielded a green emission color. Furthermore, when applied to banknotes, plastic cards, fabrics, and artwork, the opaque solution mixed with polymers remained invisible to the naked eye; however, under 980 nm laser irradiation, the distinct green color became apparent, offering a viable approach for anti-counterfeiting measures.