The alloys composed of magnesium (Mg) are deemed appropriate materials for utilization in the automotive, aerospace, and medical sectors due to their exceptionally high specific strength and density. Due to the strengthening mechanisms and superior mechanical properties, Mg–Gd systems pique the interest of researchers. The property enhancement is enabled by the formation of nano-scale stable (β) and metastable (β′) precipitates in the Mg–Gd system. Additionally, the concentration of the various alloying elements significantly influences the formation of the nano-level precipitates. This article presents an overview of the Mg–Gd system, focusing on its microstructure, mechanical properties, and corrosion behavior. In addition, the variety of manufacturing processes utilized to fabricate the Mg–Gd system is also discussed. Enhanced mechanical properties were attained through the combination of casting/deformation methods and various heat treatment techniques. The mechanical and corrosion behaviors have been extensively discussed, in connection to the effects of the second phase/precipitates. This article provides an overview of recent developments pertaining to Mg–Gd alloy and extrapolates potential future developments.