One-step sintering process was introduced to fabricate phosphor-in-glass (PiG) composite. Commercial cerium doped lutetium aluminum garnet (LuAG:Ce, Lu3Al5O12:Ce3+) phosphor was subjected to high-energy ball milling in a planetary ball mill. By controlling the milling time and velocity, the LuAG:Ce phosphors with average diameters from 0.5 to 10 μm was prepared. The effect of phosphor particle size on densification, final microstructure, thermal and optical properties of PiG was discussed. The results showed that the as-sintered PiG sample had amorphous phase and the LuAG:Ce phosphor particles uniformly distributed in glass matrix. LuAG:Ce particles were well preserved in silica glass matrix without any decomposition reaction. As the ball-milling process proceeded, the luminescent efficiency of phosphor was degraded owing to the low crystallinity of the surface of the LuAG:Ce particles. However, the sintering of LuAG:Ce with the glass and CdS QDs led to healing of the luminescence efficacy up to 23 % and shifting of chromaticity coordinates from green to yellow region. The improved value of correlated color temperature and the color rendering index of prepared PiG was achieved around 3100 K′ and 95, respectively. Moreover, the PiG with milled LuAG:Ce performs good laser output and can resist higher laser power owing to the effective heat dissipation.