Alkaline niobates are most suitable and excellent candidates for lead free piezoceramics, as they exhibit morphotropic phase boundary and have ultra-large piezoresponse similar to them. We provide direct experimental evidence of ferroelectric to paraelectric phase transition in (Li_0.06Na_0.94 )NbO₃ with reduction of particle size using a combination of x-ray and neutron powder diffraction techniques at room temperature. Detailed Rietveld analyses of x-ray data show variation of particle sizes from micrometer to nanometer for sintered, calcined, and ball milled powders. The ferroelectric orthorhombic phase for micron sized powder (~1.17lm) is found to transform to paraelectric phase by reducing particle size to ~10.8nm. The crystal structure of paraelectric phase has been identified with tetragonal symmetry (P4₂/mmc) and is found to be a post perovskite phase. The low temperature neutron diffraction studies on the powders with different particle sizes reveal that orthorhombic to rhombohedral phase transition gets suppressed with reducing particle size.