A new class of environmentally benign and high IR reflective pigments having the general formula, MgBi2-xYxO4 was synthesized by a conventional solid-state reaction route and the structural, morphological, and optical properties of the developed pigments were characterized. The substitution of yttrium in MgBi2-xO4 induces structural transition from a monoclinic to a cubic fluorite structure exhibiting bright yellow colors with significant IR reflectance (91%).