Two samples of ultra small Gd(III) doped iron oxide nanoparticles were prepared to investigate Gd(III) doping effect on longitudinal (r1) and transverse (r2) water proton relaxivities. Gd(III) doping mole percents were 0.2 and 0.4 for samples 1 and 2, respectively. Average particle diameters were 2.5 to 2.1 nm for samples 1 and 2, respectively. Reduced r1 and r2 values were observed in both samples. We attributed this to reduced magnetizations arising from opposing effect of Gd(III) to net magnetizations of Fe(III)/Fe(II) in oxide nanoparticles