Transparent plasma display can be realized by developing the synthetic chemistry of appropriate nanophosphors and generating nanophosphor-based transparent luminescent layers. For this goal, red-emitting $Y(V_{0.5},;P_{0.5})O_4$:Eu nanophosphors were synthesized by a facile hydrothermal route at $200^{circ}C$ for 48 h and the resulting nanophosphors were subsequently annealed at $800^{circ}C$ at an ambient atmosphere. The crystallographic structure, morphology, and emission property of the as-synthesized and annealed nanophosphors were compared. Choosing 2-methoxyethanol as a dispersion medium and applying a standard sonication, well-dispersed nanophosphor solutions could be prepared. Using these dispersions, visible transparent nanophosphor layers were spin-deposited on glass substrates. By combining $Y(V_{0.5},;P_{0.5})O_4$:Eu nanophosphor layer/glass substrate as a rear plate with a front plate used in a conventional plasma display panels (PDPs), mini-sized transparent red-emitting PDPs were constructed. Transmittance and luminance properties of two transparent test panels using as-synthesized versus $800^{circ}C$-annealed nanophosphors were characterized and compared.