$SrGd_{2-x}(MoO_4)_4:Er^{3+}/Yb^3$ phosphors with doping concentrations of $Er^{3+}$+ and $Yb^{3+}$ ($x=Er^{3+}+Yb^{3+}$, $Er^{3+}=0.05$, 0.1, 0.2, and $Yb^{3+}=0.2$, 0.45) were successfully synthesized by the cyclic microwave-modified sol-gel method, and their upconversion mechanism and spectroscopic properties have been investigated in detail. Well-crystallized particles showed a fine and homogeneous morphology with grain sizes of $2-5{mu}m$. Under excitation at 980 nm, $SrGd_{1.7}(MoO_4)_4:Er_{0.1}Yb_{0.2}$ and $SrGd_{1.5}(MoO_4)_4:Er_{0.05}Yb_{0.45}$ particles exhibited a strong 525-nm emission band, a weak 550-nm emission band in the green region, and a very weak 655-nm emission band in the red region. The Raman spectra of the doped particles indicated the domination of strong peaks at higher frequencies of 1023, 1092, and $1325cm^{-1}$ and at lower frequencies of 223, 2932, 365, 428, 538, and $594cm^{-1}$ induced by the incorporation of the $Er^{3+}$+ and $Yb^{3+}$+ elements into the $Gd^{3+}$ site in the crystal lattice, which resulted in the unit cell shrinkage accompanying a new phase formation of the $[MoO_4]^{2-}$ groups.