In the paper an influence of Gd/Y substitution on the magnetic properties and exchange interactions of the YxGd1−xNi3 (x=0.0, 0.2, 0.4, 0.6, 0.8, 1.0) polycrystalline compounds have been studied. The partial replacement of Gd by Y atoms is reflected in decreasing of the Curie temperature (TC) as well as decreasing of effective the magnetic moment (μeff). It has been shown that such a behaviour strongly depends on the magnetic interactions. Exchange coupling parameters of R–R (ARR), T–T (ATT) and R–T (ART) have been evaluated from M(T) magnetization curves (2–300K, 2T) based on the mean field theory (MFT) calculation. The magnetocaloric effect (MCE) has been estimated from the family of magnetic isotherms. The magnetic entropy indicates relatively small change with the Gd/Y substitution. The value of ΔSm(T,H) is higher for Gd-rich compounds and, respectively, decreases with Gd/Y substitution.