Cerium-activated yttrium aluminate ($Y_3Al_5O_{12}:Ce^{3+}$) exhibiting a garnet structure has been widely utilized in the production of light emitting diodes (LEDs) as a yellow emitting phosphor. The commercialized yttrium aluminum garnet (YAG) phosphor is typically synthesized by a solid-state reaction, which produces irregular shape particles with a size of several tens of micrometers by using the top-down method. To control the shape and size of particles, which had been the primary disadvantage of top-down synthetic methods, we synthesized YAG:Ce nanoparticles with a diameter of 500 nm using a coprecipitation method under the atmospheric pressure without the use of template or special equipment. The precursor particles were formed by refluxing an aqueous solution of the nitrate salts of Y, Al, and Ce, urea, and polyvinylpyrrolidone (55 K) at $100^{circ}C$ for 12 h. YAG:Ce nanoparticles were formed by the calcination of precursor particles at $1100^{circ}C$ for 10 h under atmospheric conditions. The phase identification, microstructure, and photoluminescent properties of the products were evaluated by X-ray powder diffraction, scanning electron microscopy, absorption spectrum and photoluminescence analyses.