The luminescence properties of doubly activated terbium aluminium garnet samples were investigated in the present study. Commercial Tb₃Al₅O₁₂:Ce³⁺ (TAG:Ce) shows the typical Ce³⁺ ion luminescence of the allowed Ce³⁺ d-f transition. Eu³⁺ co-doping, however, reveals interesting results. In TAG:Ce, Eu, both Ce³⁺ and Eu³⁺ luminescence was measured at different Ce and Eu activator concentrations. The Ce³⁺ ion can be used as a sensitizer in the TAG lattice that transfers its energy directly or via the Tb sublattice to the activator Eu³⁺. The energy-level diagram was proposed to explain the luminescence mechanism. Application of TAG:Ce, Eu with improved chromaticity coordinates CIE (Commission Internationale de l'Eclairage) and color rendering index (CRI) in light emitting diodes (LEDs) is demonstrated.