Gadolinium-substituted Bi4Ti3O12 (i.e. Bi4−xGdxTi3O12) were synthesized by sol-gel process for different compositions, and thin films were deposited on Pt (Pt/TiO2/SiO2/Si) substrate by spin coating. Post annealed films at 700° C were investigated for their structural properties using x-ray diffraction and Raman spectroscopy indicating solid solution for compositions: x = 0.00, 0.46, 0.56, and 0.85 where Bi ion is replaced by Gd-ion. Sol-gel derived Pt/Bi4−xGdxTi3O12 film/Pt capacitor structure was tested for dielectric, ferroelectric, and leakage current responses. Films showed ferroelectricity with polarization, Pr = 22 µC/cm2 for composition: x = 0.46. Magnetic response of the powder sample for composition: x = 0.85 was tested using SQUID, which showed superparamagnetic at room temperature and magnetic at 5 K with magnetic coercivity (Hc) = 29 Oe and very small remanance (σr) = 5.4 × 10−4 emu/g.