In this study, we report on the diffusion of neodymium (Nd) and erbium (Er) into n-type and undoped GaN and subsequent measurements of the room-temperature (RT) magnetic and optical properties. The diffusion profile has been measured via secondary ion mass spectroscopy (SIMS) with rare-earth (RE) concentration yields of up to 1×1018/cm3. The ferromagnetic properties were measured using an alternating gradient magnetometer (AGM) giving a saturation magnetization (Ms) of up to 3.17emu/cm3 for the RE-diffused layer. The photoluminescence (PL) emission of the Nd-diffused and Er-diffused GaN is observable in the near-infrared (NIR) and infrared (IR) regions of the spectrum, respectively. The Nd-diffused GaN samples show NIR emission at 1064nm and 1350nm, while Er-diffused GaN samples have IR emission at 1546nm. This appears to be the first successful result of Nd diffusion doping into GaN crystals, and the first demonstration of above RT ferromagnetism involving GaN diffused with Nd. Details of our ferromagnetic and optical emission studies, related to the RE diffusion into GaN, are presented.