Considering the important applications of near infrared light sources, phosphors emitting in this region are always explored. New hosts are studied for this purpose. Keeping with this tradition we have investigated CaGd2(WO4)4 host by using SSR method. XRD pattern of the as prepared compound confirms the monoclinic crystal structure with I2/b space group. Well known lanthanide activators Nd3+ and Yb3+ led to the desired infrared emission. Nd3+ yielded emission by itself under f-f excitation while Yb3+ depended upon the energy transfer from Nd3+ and to yield near infrared light. The host also provided sensitization. However this is very weak compared to the intensities of the f-f transitions of Nd3+. PL and PLE spectra as well as the mechanism of energy transfer is explained on the basis of the known energy level diagrams. Prepared phosphor have potential application in the field of Solid State Laser and bio-imaging.