Magnetic nano ferrites (MNFs) can arbitrate applied magnetic fields to generate the magnetic force effects and local magnetic fields, which are beneficial for biomedical applications. Spinel nano ferrites have been extensively used for biomedical applications because of their extraordinary nano-magnetism properties. The current work aims to prepare and analyse spinel nano ferrites (SNFs) for cancer cell treatment in biomedical applications. The biocompatibility of the (SNFs) would be improved by functionalizing with an anti-cancer drug. The current work reports the synthesis, structural, spectral, morphological, and electromagnetic evaluations of the Gd3+ doped Co nano ferrites (GCF) having the composition of CoFe2-xGdxO4 (x = 0.0, 0.025, 0.05, and 0.075). The nano ferrites of GCF were synthesized using the sol-gel method. The characterizations were carried out using XRD, FESEM, TEM, UV–Vis, and FTIR respectively. XRD reveals a single-phase cubic phase of Co ferrites, whereas Gd-doped shows extra peaks of GdFeO3. VNA and VSM to find GCF nano ferrites' dielectric and magnetic features. FESEM and TEM images confirm the spherical and hexagon-shaped nanoparticles. The low coercivity with high magnetization was investigated for Co ferrites rather than Gd3+ doped Co nano ferrites. GCF particles were functionalized with an anti-cancer drug (5-Fluorouracil (FU)) to investigate the cytotoxicity and cell viability against a human breast cancer cell line (MFC-7). Cytotoxicity study of Gd substituted Co ferrites (GCF) was also evaluated. The present results depicted that 5-FU-coated GCF particles were more toxic and killed almost 21–66% of cancer cells. It is expected that the Co nano ferrites will be found to be less harmful and suitable for cancer cell treatment in biomedical applications.