Alloys of Y1 − xGdxFe2By (x = 0, 0.25, 0.5, 0.75 and 1; y = 0, 0.1, 0.15 and 0.2) have been prepared and investigated for structural and magnetic properties. The compounds with x = 0 and 1 are found to form in single phase with C15-type cubic Laves phase structure, while those with x = 0.25, 0.5 and 0.75 are observed to form with small quantities of secondary (Y,Gd)Fe3 phase. The lattice parameters, Curie temperature and the average Fe hyperfine field are found to increase with increasing x. The Gd–Gd and Gd–Fe interactions are attributed to be the main reason for the enhancement of magnetic properties. Boron was found to stabilize the (Y,Gd)Fe2 phase without affecting the magnetic properties.