TiO2 nanoparticle-loaded epoxy for light-emitting diode (LED) encapsulation is demonstrated to have a refractive index of n = 1.68, higher than that of pure epoxy (n = 1.53). The dispersion of surfactant-coated TiO2 nanoparticles into epoxy is shown to reduce the number and size of TiO2 agglomerates compared to uncoated TiO2 nanoparticle-loaded epoxy. The scattering of nanoparticle-loaded media is highly dependent on nanoparticle size and loading factor. A multilayer graded refractive index structure for LED encapsulants with layer thicknesses less than the calculated mean optical scattering length is therefore proposed. The graded-index structure shows increasing optical transmittance as the number of layers increases.