Gd-filled carbon nanotubes (which include the so-called gadonanotubes(1)) have been attracting much interest due to their potential use in medical diagnostic applications. In the present work, a vacuum filling method was performed to confine gadolinium(III) iodide in carbon nanotubes (CNTs). Filling yields in excess of 50% were obtained. Cleaning and dosing of the external walls was undertaken, as well as the study of the filled CNT magnetic properties. Overall, we found that the encapsulating procedure can lead to reduction of the lanthanide metal and induce disorder in the initial GdI3-type structure. Notwithstanding, the magnetic response of the material is not compromised, retaining a strong paramagnetic response and an effective magnetic moment of similar to 6 mu B. Our results may entice further investigation into whether an analogous Gd3+ to Gd2+ reduction takes place in other Gd-filled CNT systems.