Rapid and continuous production of phosphor (YAG: Tb) fine particles by hydrothermal synthesis in supercritical water was studied. At temperatures higher than the critical temperature of water, continuous and rapid (<60 s) production of YAG: Tb fine particles was achieved. Emission spectra obtained by UV excitation of the particles were in agreement with the typical spectral pattern of YAG: Tb. Single phase YAG: Tb was produced by using stoichiometric mixtures of metal salts [Al(NO3)(3), Y(NO3)(3), and TbCl3] as aqueous solutions with an alkali molar ratio {[OH-]/([NO3-]+[Cl-])} of 1 and a rapid heating method. No additional thermal treatment was necessary to obtain crystalline products.