Nanoparticles of CoGdxFe2 − xO4 (x = 0%, 25%, 50%) synthesized via sol–gel auto combustion technique and encapsulated within a polymer (Eudragit E100) shell containing curcumin by single emulsion solvent evaporation technique were formulated in this study. Testing of synthesized nanoparticles was carried out by using different characterization techniques, to investigate composition, crystallinity, size, morphology, surface charge, functional groups and magnetic properties of the samples. The increased hydrophilicity resulted in sustained drug release of 90.6% and 95% for E1(CoGd0.25Fe1.75O4) and E2(CoGd0.50Fe1.5O4), respectively, over a time span of 24 h. The relaxivities of the best-chosen samples were measured by using a 3T magnetic resonance imaging (MRI) machine, and a high r2/r1 ratio of 43.64 and 23.34 for composition E1(CoGd0.25Fe1.75O4) and E2(CoGd0.50Fe1.5O4) suggests their ability to work as a better T2 contrast agent. Thus, these novel synthesized nanostructures cannot only enable MRI diagnosis but also targeted drug delivery.