The structural, magnetic and magnetocaloric properties of Gd7Pd3-xFex compounds with x = 0, 0.2 and 0.4 were investigated. Rietveld refinement of X-ray powder diffraction shows that all the investigated samples are single phase and crystallize in a hexagonal structure with the space group P63mc. The lattice parameters (a, b and c), and the cell volume (v) decrease with the increase of Fe content in Gd7Pd3-xFex, mainly because of the difference in atomic radius between Fe and Pd. Magnetization versus temperature in a magnetic applied field of 0.05 T shows that Gd7Pd3-xFex displays a paramagnetic (PM) – ferromagnetic (FM) transition with the Curie temperature TC decreasing from 336 K for x = 0.0 to 319 K for x = 0.4. Under a field change of 0 to 5 T, the maximum values of the magnetic entropy change $\left( {|{\rm{\Delta }}S_M^{max}|} \right)$ are 5.09 J kg−1 K−1, 4.89 J kg−1 K−1, and 4.46 J kg−1 for x = 0, 0.2, and 0.4, and the corresponding relative cooling powers (RCP) amount to 387.6 J Kg−1, 357.2 J · Kg−1, and 385.5 J Kg−1, respectively. The stable magnetocaloric effect and refrigeration capacity near room temperature reveal that the Gd7Pd3-xFex compounds may be considered as refrigerants for magnetic refrigeration.