Abstract We report and analyse the results of our calculation of low field magnetization of the degenerate dilute magnetic semiconductor Pb1-x-ySnyMnxTe for × = 0.03 and y = 0.72, for a carrier density of holes p = 1.4 × 1020 cm−3. The contribution comes from two different mechanisms namely localized magnetic impurities of Mn+2 , and band effects. For the calculation of magnetic impurity contribution we assume that the these impurities are distributed in random fashion over the host system and we use three spin cluster model which includes single, pair and triple spin clusters. Moreover, we consider two types of three spin clusters like open and closed triplets. The band effect includes lattice diamagnetism as well as spin polarization of carriers. The former has been calculated using a two band model of the host system and the effects of the impurities are incorporated through the modification of its band gap. The variation of the energy band gap as a function of Sn and Mn concentrations and temperature is considered through an empirical expression and value of the energy gap so obtained for Pb1-x-ySnyMnxTe ( × = 0.03 and y = 0.72) is about 125 meV at 5 K. The spin density of carriers is evaluated using the second order k → . π → perturbation theory. The major contribution to local moment magnetization comes from single spin clusters and then from pair and triads. The diamagnetic contribution arises from the diamagnetic susceptibility and hence it is negative. The contribution from spin density of carriers, as expected, is very small in the range of carrier density considered for present study. Good agreement between our theory with experiment is another important feature of our calculation.