Gd3+ doped ZnO nanoparticles are synthesized by wet chemical route method and investigated through structural, optical, magnetic and photocatalytic properties. Transmission Electron Microscopy technique has been performed on undoped and Gd3+ doped ZnO nanoparticles. X-ray diffraction, X-ray photoelectron spectroscopy and Raman analyses are carried out in order to examine the desired phase formation and substitution of Gd3+ in the ZnO matrix. Gd3+ doped ZnO nanoparticles show enhanced photoluminescent and ferromagnetic properties as compared to undoped ZnO. The broad visible emission of ZnO is found to be largely dependent on the surface defects and these surface defects can be tailored by Gd3+ doping concentration. Furthermore, Gd3+ doped ZnO nanoparticles also show improved photocatalytic properties as compared with undoped ZnO nanoparticles under ultraviolet irradiation. (C) 2013 Elsevier Ltd. All rights reserved.