Luminescent nanocomposite of epoxy filled with Er3+-doped yttria-stabilized zirconia (7YSZ) is prepared with their luminescence spectra measured in the temperature range 123-423 K. Fluorescence intensity ratio (FIR) of the two Er3+ emissions is also obtained in the same temperature range. Er-7YSZ/epoxy nanocomposites exhibited higher sensitivity of 0.18 % /K as compared with the bare Er-7YSZ particles. Luminescence thermometry is demonstrated by using the nanocomposites as temperature sensitive paint (TSP) with a resolution of 1 K. The advantage of FIR technique combined with the excellent thermal stability of epoxy matrix makes the Er-7YSZ/epoxy nanocomposites viable as temperature sensitive paint for aerodynamic applications.