Thin films of Aluminum Nitride (AlN) doped with Gadolinium (Gd) are deposited on Si (111) substrates, in pure Nitrogen (N) atmosphere using reactive magnetron sputtering technique at room temperature. The as-deposited thin films are irradiated by protons carrying 335 keV energy with a fluence of 1 ? 1014 ions cm-2. Rutherford Backscattering Spectroscopy (RBS) is carried out using a 2 MeV He++ beam to understand the stoichiometric and dimensional features of the films. Modifications in the structural, electronic, optical, and electrical properties are investigated prior to and after the irradiation using X-ray diffraction (XRD), Fourier transforms, infrared spectroscopy (FTIR), diffuse reflectance spectroscopy (DRS), and four-probe point method. Stopping power and range of ions in matters (SRIM) is used to study the non-ionizing energy loss (NIEL) and Frenkel defect density/vacancies in AlN, caused by irradiation. Proton irradiation-induced changes in the structure and enhancement in the optical and electrical characteristics of the films make AlN:Gd a good candidate for advanced electronics and optical technology.