[en] Lanthanide based nanoparticles are vastly studied in context of potential applicability as theranostic agent with special attention to Gadolinium (III) based nanoscaled materials which has proven its efficiency as a theranostic material, and in-vitro cytotoxicity studies of dextran‐coated gadolinium oxide nanorods (DGNR). Gd₂O₃ nanorods were developed by a convenient route of synthesis which allowed dextran coating. The PXRD analysis reveals combining tumour diagnostic imaging with therapeutic modalities. In the context of achieving bio-compatibility, use of bio-polymer based coating agent is highly motivated. In this study, we describe the chemical synthesis, physical characterization cubic crystalline structure of Gd₂O₃. HR-TEM analysis showed an average particle diameter of ~34 nm and length~147 nm but despite its considerably greater size was determined to be non‐toxic, in cellular cytotoxicity tests. Free radical scavenging was determined using the DPPH method proving our material as non-oxidising. DGNRs proved to be non-haemolytic and the cytotoxicity was evaluated by MTT assay revealed excellent bio-compatibility against PBMC cells for concentrations as high in-vitro cancerous environments and MTT studies reveal significant toxicity. Cell proliferation and cell migration studies also suggest potential use of DGNRs as anti-cancer agents. (author)