Gadolinium (III) acetylacetonate was treated by solvothermal method to produce gadolinium complexes with acetylacetonate and -OH groups. The composition, fluorescence, and magnetic properties of the products were studied in detail. The fluorescence showed the products possessed higher energy emission and excitation fluorescence compared to Gadolinium (III) acetylacetonate. Also the product produced at 160 °C possessed higher fluorescent intensity and responding ability toward external magnetic field. So the products were hydrophobic materials with magnetic and fluorescent properties.