Gd99.75Fe0.25 alloy prepared by arc melting under purified argon atmosphere and homogenization annealing treatment at 1123 K for 168 h was investigated by X-ray diffraction, physical property measurement system, microhardness tester and electrochemical workstation. The results show that the Gd99.75Fe0.25 alloy still retains hexagonal crystal structure of pure Gd. The Curie temperature of Gd99.75Fe0.25 alloy is 294 K, and the alloy exhibits a second-order magnetic transition from ferromagnetism to paramagnetism. The maximum magnetic entropy changes of Gd99.75Fe0.25 alloy under magnetic field changes of 0~2 T and 0~5 T are 4.99 J·kg-1·K-1 and 9.37 J·kg-1·K-1, respectively, which are larger than that of pure Gd. The micro-hardness (HV0.2) of Gd99.75Fe0.25 alloy is 590 MPa, which is equivalent to that of pure Gd. But the corrosion resistance is improved by doping a small amount of Fe. Large magnetocaloric effect and good application features make the Gd99.75Fe0.25 alloy as a potential magnetic refrigerant at room temperature.