This study is an attempt to produce gadolinium-doped iron oxide nanoparticles for the purpose of utilization in magnetic fluid hyperthermia (MFH). Six gadolinium-doped iron oxide samples with varying gadolinium contents ( were prepared using the hydrothermal method and high vapor pressure to incorporate gadolinium ions in the iron oxide structure. The samples were indexed as , with varying from 0.0 to 0.1. The results reveal that gadolinium ions have a low solubility limit in the iron oxide lattice (x = 0.04). The addition of gadolinium caused distortion in the produced maghemite phase and formation of other phases. Based on X-ray diffraction (XRD) analysis and photoelectron spectroscopy (XPS), it was observed that gadolinium mostly crystalized as gadolinium hydroxide, for gadolinium concentrations above the solubility limit. The measured magnetization values are consistent with the formed phases. The saturation magnetization values for all gadolinium-doped samples are lower than the undoped sample. The specific absorption rate (SAR) for the pure iron oxide samples was measured. Sample GdIO/0.04, pure iron oxide doped with gadolinium, showed the highest potential to produce heat at a frequency of 198 kHz. Therefore, the sample is considered to hold great promise as an MFH agent.