In this work we have studied the magnetic properties of sol–gel synthesized Gd doped TiO 2 nanoparticles. The Gd concentration varying from 0.03 to 0.07mol. Structural, morphological and compositional analyses have been monitored with X-ray diffraction, transmission electron microscope (TEM), Raman spectroscopy and energy dispersive X-ray (EDX) spectroscopy. XPS spectra establish that Gd ions are in the +3 oxidation state. Photoluminescence intensity enhances at 0.03 and 0.05mol and then quenches at 0.07. This is likely due to the formation of emission quenching centers. All the samples exhibit paramagnetism at room temperature as well as at 10K. It is observed that due to the shielding of 4f shell of Gd 3+ ions by 6s5d shell the direct exchange interaction of these Gd 3+ ions with other Gd 3+ ions is weak. These non-interacting and localized magnetic spins of Gd 3+ induce only paramagnetism. The high magnetization exhibited by the samples at 10K is due to minimization of the thermal randomization of the magnetic spins. Antiferromagnetic interaction persists at 0.03mol and it gets stronger at 0.07mol. Antiferromagnetism appears due to strong superexchange interaction of Gd 3+ ions via O 2− ions.