The liquid-liquid extraction (LLE) process for lanthanide-actinide separation from the nuclear fuel cycle has several drawbacks such as, the requirement of cooling for decay heat control, the handling of large volumes of toxic volatile organic compounds (VOCs), and secondary waste generation. Alternatively reprocessing without spent fuel cooling is done by pyroprocessing, which uses high-temperature corrosive molten salts and requires elevated temperature, and is an energy-intensive process. In recent years, some of the shortcomings of both LLE and pyroprocessing are overcome by the use of room temperature ionic liquids (RTILs) as the solvents. In the present work, an attempt was made to exploit the potential of the neoteric, less-corrosive, low-VOC RTILs toward direct dissolution-based separations at ambient conditions. The present paper involves the selective dissolution of Eu2O3 in an RTIL, i.e., C4mim·NTf2 containing 2-thenoyltrifluoroacetone (HTTA) within ca. 30 min at ambient conditions; while the dissolution of AmO2 and UO2 were found to be very poor, making this an attractive method for lanthanide-actinide separation, a key step in radioactive waste management, i.e., an actinide partitioning and transmutation strategy. The quantitative dissolution of Eu2O3 from simulated spent nuclear fuel with different Eu2O3 loading was also shown. Water plays a crucial role in deciding the kinetics of dissolution and amount of the dissolved oxide. The combination of X-ray absorption, fluorescence, and UV-vis spectroscopic studies suggested the formation of the dehydrated anionic complex Ln(TTA)4- to play pivotal role in the oxide dissolution process. The structure of the complex was analyzed by density functional theory and extended X-ray absorption fine structure. The mechanism of oxide dissolution was proposed and electrochemical studies were performed to understand the possible recovery option using electrodeposition of the dissolved Eu3+.