First-principles density functional theory (DFT) study of embedding V and Nb atom in monovacant and divacant graphene is reported. Complete/almost complete spin polarization is verified for V/Nb embedding in MV/DV graphene. The origin of magnetism has been identified via interaction of 3d-states of embedded trnasition metal atom with p-states of inequivalent C atoms present in the vicinity of embedding site. Band structure analysis has been performed to address the semiconducting behavior of graphene in minority spin channel on embedding V/Nb atom. The isosurface plots also confirm the magnetic nature of present nanosystems. Our results reveal that these nanosystems have potential for futuristic applications such as spintronics, energy resources and high frequency transistors.A truly two-dimensional honeycomb structure of carbons atoms is famous as "Graphene", which can be exfoliated from graphite in the form of one-atom thick monolayer [1]. Right from its discovery, graphene is considered as excellent candidate for several fundamental and technological interests in view of various properties such as scalability, chemical stability, ballistic transport at room temperature [2][3][4], high mobility of charge carriers [5] and high elasticity [6]. Additionally, a weak spin-orbit interaction among carbon atoms leads to a long spin relaxation length on the surface of graphene [7]. Hence, graphene is a potential substrate to use in spintronic devices, recording media, magnetic inks, spin qubits, spin valves and nanomagnetic magnetism [8][9].However, in spite of huge varieties of its novel applications, the use of graphene is rather limited due to its zero band gap [10][11]. Presently, many research efforts are directed towards inducing and fine tuning of band gap in graphene [12][13] and developing various approaches to effectively induce and manipulate the magnetic states in it which are crucial for its use in nanoscale devices [14][15][16]. Regarding magnetism, a lot of attentions were focused on the production of magnetic carbon from different routes like chemical vapour deposition [17-18], ion bombardment [19-20], nanofoam [21], ion implantation [22] etc. Spin polarized density functional theory (DFT) calculations of magnetic properties of the vacancies and vacancy hydrogen complexes of graphite [23] showed that these defects lead to a macroscopic magnetic signal as also observed in experiments [24]. Firstly, Lehtinen et al [25] reported on vacancies in graphene nanosheets and analyzed the role of adatoms in diffusion over surfaces to generate a magnetic moment of ~ 0.5 µ B on graphene. Experimental [26-27] and theoretical [28-29] investigations demonstrated that the most preferred way to incorporate transition metals (TMs) impurities in graphene is to attach them to vacancies. Recently, Gan et al [30] using high resolution transmission electron microscopy (HRTEM) observed substitutional Au and Pt atoms in graphene nanosheets increases the potential of graphene in spintronic applications. Wang et al [31] also found ...