Cerium dioxide (CeO2) has special electrical and optical properties, and chemical and thermal stability. It has been used in semiconductor devices and as a luminescent material. In this work, CeO2 nanoparticles were synthesized by the precipitation method and the product annealed at various temperatures. Thermogravimetric analysis (TGA)/differential scanning calorimetry (DSC) results show that the optimum annealing temperature for fabrication of CeO2 nanoparticles is greater than 500A degrees C. When the calcination temperature is increased from 550A degrees C to 1050A degrees C, Fourier-transform infrared (FTIR) results show that the water and impurities are almost completely removed, after calcination at 750A degrees C. The x-ray diffraction (XRD) results suggest that the synthesized CeO2 exhibits a cubic fluorite structure. The crystallite size of the CeO2 increases from 8 nm to 75 nm when the calcination temperature is increased from 550A degrees C to 1050A degrees C. The absorption spectrum in the ultraviolet (UV) region from 372 nm to 395 nm demonstrates their applicability as UV-filter materials, and the shift of the estimated E (g,eff) from 3.21 eV to 3.65 eV demonstrates their applicability in photoelectric devices. CeO2 would be potentially important for applications such as insulator structures, stable capacitor devices, and light-emitting diodes (LEDs).