In recent years, the interaction of unrestricted particles with dispersed multiphase flows has been linked to a number of important engineering applications. Among these applications, the novel idea of immersion-cooled phosphor particles, which has the potential of significantly increasing the thermal limits of phosphor converted white light-emitting diode (LEDs) (Pc-WLEDs), has yet to be thoroughly investigated. With this objective, this research utilizes the discrete phase modeling (DPM) technique for the characterization of phosphor location and movements within a buoyancy-driven flow, which is the determining factor in the optical behavior of the newly proposed Pc-WLED configuration. Two-phase flow analysis is conducted to characterize particle movement. Heat transfer, flow, and energy paths of self-heating phosphor particles are extracted, and the influence of particle sizes is analyzed in detail. The results show that with immersion liquid cooling, the highest phosphor particle temperature is recorded to be under 420 K, while larger size particles introduce higher heat transfer rates to the Pc-WLED package for the same number of particles. Moreover, depending on the particle size and position, individual phosphor particles can follow a different trajectory that can affect the probability of obtaining white light emission.