The modification of magnetic interactions due to the reduction of particle size has been explored in the case of nanocrystalline Gd0.5Sr0.5MnO3 compound. In contrast to the normal ferromagnetic or antiferromagnetic compounds, the studied nanoparticle exhibits quite different magnetic and magnetocaloric properties. The experimental outcomes are also compared with its bulk counterparts having disordered ferromagnetic ground state. Additionally, at the cryogenic temperature range, the significant magnetocaloric effect in both the samples indicate the applicability as a suitable magnetic refrigerant material. Moreover, the desertion nature of the magnetic hysteresis loop due to the field cycling indicates the superiority of the nanocrystalline compound over its bulk counterpart.