Oxide double perovskites (DPs) with half-filled 4f Rare-earth (RE) elements along with partially-filled 3d transition-metals (TM) are rich source of exotic spin-orbital properties. Herein, we have investigated explicitly, the structural properties, spin-orbital ground states of the bulk phases and electronic structure of the RE-double perovskites Sm2−xGdxCoMnO6x=0.0,0.5,1.0,1.5 by synthesizing high quality single-phase samples and undertaking high precision experimental measurements of the transport and magnetic properties down to 8 K. In fact, we are able to show that with Gd-substitution, it lowers the value of the magnetoresistance in Sm2CoMnO6 (SCMO) and it is consistent with the observed Curie-Weiss temperature (TCW) which is lower than the observed ordering temperature (TC) upon Gd-substitution of Sm3+. Native presence of magnetic impurities (Co3+ and Mn3+) with low-spin S = 0 configurations in the SCMO vs. the nominal higher spin-state (Co2+ and Mn4+) with S = 3/2 is predicted. It essentially tunes super-exchange mechanism and relative ground states as compared to Gd2CoMnO6 (GCMO). The synergy of crystal structure and electronic structure to the magnetic properties are thus, established with first-principles calculations data, employing self-consistent Hubbard U (Uself) determination for both 3d- and 4f-site’s electronic correlation. The computed quenched spin-moments (∼20–40 %) in the experimental observation at the Sm3+(4f5) and Gd3+(4f7) sites from the ideal value 10.0 μB and 14.0 μB per f.u. is established, respectively. It could be due to magnetic impurities in their ferri-magnetic ground state ordering (FiM3), as also confirmed from present first-principles calculations in the pristine limit. In SCMO x=0.0, the valence band is dominated with the RE(4 f)-orbitals along with the TM(3d)- and O(2p)-orbitals, resulting it as a charge-transfer type semiconductor, while in GCMO x=1.5, Gd(4 f)-orbitals are localized well below 6.5 eV from Fermi level, EF = 0 eV, resulting it as a Mott-insulator-like, mediated via 3d-3d transitions. The long-range ferro-magnetic spin-ordering ground states in SCMO is established through non-collinear spin-orbital ground states determinations. Indeed, the long-range insulating FM ordering in SCMO from combined 3d-4f-sub-lattice’s magnetic interactions, but found to be broken with Gd-substitution (x = 0.5–1.5) aligning all 3d-4f site’s spins into the in-plane. Observed coercive field (HC) and remanence asymmetry (Mr), the nature of exchange-bias transformed from inverse to conventional type, as soon as it contains a small fraction of the Gd-substitution (x = 0.5).