Solvothermal technique has been utilized for the synthesis of pure and Gd-doped CdS nanorods. The effect of nano-size and doping on structural, magnetic, dielectric and magnetodielectric properties of synthesized samples has been investigated. Transmission electron microscopy reveals their nanorods like morphology. Structural study confirms the hexagonal wurtzite structure of synthesized nanorods. The change in the values of lattice parameters and strain is witness of proper doping of Gd in CdS. Raman spectra show that Gd-doping leads to red shift in the Raman frequency as well as a decrease in intensity of observed modes. Synthesized nanorods exhibits ferromagnetism and the value of magnetic saturation have been found to be increased from 0.071 and 0.110emu/g, respectively, for pure and 10% Gd-doping CdS nanorods. The dielectric constant for pure and Gd-doped CdS nanorods has been found to be 38 and 59, respectively. The synthesized nanorods exhibit magnetodielectric effects.