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Abstract: This paper reports the paramagnetic behavior of Mn doped ZnO co-doped with rare earth (Gd and Sm) atoms. The formation of secondary rare earth oxides (Gd2O3 and Sm2O3) is confirmed from the X-ray diffraction patterns. The rare earth oxides in the system forbids the grain growth and interconnection between the grains. The weak link between the grains suppresses the long range exchange interaction between the Mn ions and hence, reduces the ferromagnetic ordering. Owing to the large mismatch between ionic radii of rare earth and transition metal atoms inside the matrix, the rare earth element cannot contribute to promote ferromagnetic behavior in Mn doped ZnO, irrespective of their high individual magnetic moments. [Copyright &y& Elsevier]