The impact of Gd addition on the structural and magnetic properties of [Formula: see text]-FePt alloy thin films, which were sputter-deposited on MgO(001) substrates at 800[Formula: see text]C, was investigated. A rapid deterioration of [Formula: see text] chemical ordering along with a strong amorphization effect is observed with addition of Gd. At more than 20 at. % Gd, additional crystalline phases occur. Due to the diminishing [Formula: see text] chemical order, the perpendicular magnetic anisotropy (PMA) gets strongly reduced from about 3 down to 1 MJ/m[Formula: see text] with addition of 14 at. % Gd. For higher Gd concentrations, the easy axis of magnetization turns fully in-plane due to dominating magnetic shape anisotropy. Furthermore, the saturation magnetization gets reduced with Gd addition due to the antiferromagnetic coupling between the Fe and Gd magnetic moments. Also, the Curie temperature can be lowered. Interestingly, with addition of Gd, a change in film morphology takes place, changing from an isolated island structure to a more continuous film morphology, which is of particular interest for samples with low Gd concentration as these films exhibit still strong PMA but rather low coercive fields.