This work presents the synthesis of Ni0.5Cd0.5Fe2O4 ferrite nanoparticle using the sol–gel method. X-ray diffraction (XRD) confirmed the formation of a cubic spinel phase (space group \(Fd\bar{3}m)\) , while Rietveld refinement and X-ray photoelectron spectroscopy (XPS) provided insights into cation oxidation states and site occupancies. Compared to undoped NiFe2O4, the Cd-substituted sample exhibited an expanded lattice parameter (a = 8.5190 Å) and larger crystallite size (D = 99 nm). Fourier-transform infrared (FTIR) spectra showed characteristic vibrational modes of tetrahedral and octahedral sites. Optical studies revealed broad UV–Vis–NIR absorption, a reduced direct bandgap of 2.13 eV, low Urbach energy (0.50 eV), a small extinction coefficient (~10⁻3), a favorable refractive index (2.33), enhanced optical conductivity, and improved dielectric properties. Magnetic measurements demonstrated a ferrimagnetic–paramagnetic transition at TC = 470 K, soft magnetic behavior with low coercivity (19 Oe at 5 K; 9 Oe at 300 K), and moderate saturation magnetization (91.11 emu/g at 5 K; 54.35 emu/g at 300 K). Although Cd substitution reduced the magnetic performance compared to pristine NiFe2O4, it markedly enhanced optoelectronic efficiency by improving visible-light absorption, transparency, and energy conversion. The Ni0.5Cd0.5Fe2O4 sample demonstrates significant promise as a multifunctional material, particularly for applications in photocatalysis, solar energy conversion, and optoelectronics.