Fabrication of Cd0.5Zn0.5NdxFe2-xO4 nanoparticles, with x = 0.00, 0.01, 0.02, 0.04, 0.06, and 0.08, has been carried out using a wet chemical co-precipitation method. The effect of the rare earth Nd3+ doping on the prepared ferrites was structurally investigated using X-ray diffraction (XRD) along with Rietveld refinement. The results indicate great crystallinity in the FCC Fd3m spinel structure of Cd0.5Zn0.5NdxFe2-xO4 nanoparticles. The crystallite size obtained using Debye-Sherrer, Williamson– Hall, Size-strain plot (SSP), and Halder-Wagner (H-W) methods, decreases with the increase of doping concentration until the solubility limit of the materials is at x = 0.04. By using transmission electron microscopy (TEM), the morphological analysis reveals the spherical shape of the samples with minor agglomeration with the aid of using a Polyvinylpyrrolidone (PVP) capping agent. Raman spectroscopy verifies the incorporation of Nd3+ in the octahedral sites and the decrease in particle size. The elemental composition was verified using X-ray photoelectron spectroscopy (XPS). The magnetic properties were studied using a vibrating sample magnetometer (VSM) and it shows superparamagnetic behavior with a decrease in the saturation magnetization and an increase in coercivity. The prepared materials were tested as liquefied petroleum gas (LPG) sensors by studying their sensitivity, selectivity, optimum working temperature, response, and recovery times. Nd3+ doping shows a great increase in LPG sensing sensitivity 4 to 20 times than the pure samples. The doping concentration also decreases the response and recovery times.