In this investigation, Gd and Mn co-doped Bi 0.85 Gd 0.15 Fe 1-x Mn x O 3 (x=0.0-0.15) nanoparticles have been prepared to report the influence of co-substitution on their structural, optical, magnetic and electrical properties. Due to simultaneous substitution of Gd and Mn in BiFeO 3 , the crystal structure has been modified from rhombohedral (R3c) to orthorhombic (Pn2 1 a) and the Fe-O-Fe bond angle and Fe-O bond length have been changed. For Mn doping up to 10% in Bi 0.85 Gd 0.15 Fe 1-x Mn x O 3 nanoparticles, the saturation magnetization (M s ) has been enhanced significantly, however, for a further increase of doping up to 15 %, the M s has started to reduce again. The co-substitution of Gd and Mn in BiFeO 3 nanoparticles also demonstrates a strong reduction in the optical band gap energy and electrical resistivity compared to that of undoped BiFeO 3 .