The study involves the synthesis and analysis of nanopowders of Gd-doped CeO2-dilute magnetic semiconductors (DMS). Nanopowder samples of Ce1-xGdxO2 were generated using the solid-state reaction approach with varying concentrations of Gd dopant (x = 2%, 4%, 6%, and 8%). This study inspects the structural, optical, and photoluminescence properties of Ce1-xGdxO2 nanoparticles through the utilization of X-ray diffraction, UV spectrometry, and SEM. The crystalline structure of Ce1-xGdxO2 powders was determined to be cubic using X-ray diffraction investigation. The optical band gap was seen to vary from 2.87 eV to 3.20 eV as the concentration of the dopant was altered at values of x = 0, 0.02, 0.04, 0.06, and 0.08. The investigation of photoluminescence (PL) in Ce1-xGdxO2 nanoparticles was conducted using an excitation wavelength of 415 nm. The observed emission spectra ranged from 450 to 782 nm, displaying blue, green, and red emissions. The analysis of surface shape and chemical composition was conducted using scanning electron microscopy and energy-dispersive X-ray spectroscopy. The powder sample of Ce1-xGdxO2 was examined, and it was noted that the surface morphology exhibited a spherical shape. The nanopowder samples exhibit paramagnetic properties. The magnetic moment of Ce1-xGdxO2 nanoparticles that have not undergone annealing exhibited a range of magnetization values, from 4.79 x 10(-3) to 61.05 x 10(-3) emu/g. Additionally, the coercivity of these nanoparticles varied from 1.07 to 11.50 Oe, while the retentivity ranged from 1.55 x 10(-6) to 14.58 x 10(-6) emu/g.