Green synthesis of multifunctional magnesium oxide nanoparticles (NPs) were prepared by low temperature solution combustion route employing Aloe vera leaves extract as a fuel. The Aloe vera leaf extracts acts as a fuel in the preparation of MgO nanoparticles. The obtained MgO NPs were further characterized by various techniques such as PXRD, SEM, TEM and UV-visible spectroscopic studies. The surface morphologies of the prepared samples were studied with the help of scanning electron microscopy (SEM). The PXRD pattern confirmed the cubic (halite) structure of the product. The particle size was calculated by means of PXRD profile and it was found to be in the range of 20-25 nm by using the Debye-Scherrer relation. SEM images indicated the formation of various shaped MgO NPs. The NPs exhibited prominent green emission due to the presence of intrinsic defect centers. Also, the results found that the optical band gap is 4.46 eV.