Gadolinium is silvery-white; rare earth metal is malleable and ductile. Gadolinium is relatively stable in dry air, but forms an oxide coating in moist air which falls off, exposing fresh metal. Gadolinium has unusual superconductive properties and when alloyed with iron, chromium or related meals is found to greatly improve workability and resistance to temperature and oxidation.

Gadolinium is an efficient catalyst used for decarboxylation of oxaloacetic acid, conversion of orto- to para-hydrogen and polymerization of ethylene. Also, Gadolinium also possesses unusual metallurgic properties, with as little as 1% of gadolinium improving the workability and resistance of iron, chromium, and related alloys to high temperatures and oxidation.

Gadolinium is used for making gadolinium yttrium garnet (Gd3Ga5O12); it has microwave applications and is used in fabrication of various optical components and as substrate material for magneto–optical films. Gadolinium compounds are also used for making phosphors for colour TV tubes, compact discs and computer memory.

Gadolinium is paramagnetic at room temperature, Paramagnetic ions, such as gadolinium; enhance nuclear relaxation rates, making gadolinium useful for magnetic resonance imaging (MRI). Solutions of organic gadolinium complexes and gadolinium compounds are used as intravenous MRI contrast agent to enhance images in medical magnetic resonance imaging and magnetic resonance angiography.