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Gadolinium is a soluble neutron poison for ensuring criticality safety of nuclear facility. A neutron induced gamma activation device was developed for the on-line measurement of gadolinium. The experimental device consisted of an 241Am–Be neutron source, six 3He detectors and a liquid scintillation detector. The size of sample container was optimized by using Monte Carlo simulations. Aqueous sample containing gadolinium nitrate were conducted with the device to obtain the calibration curve, and neutron self-shielding effect was also studied to correct the non-linear response. The results showed the minimum detectable concentration (MDC) of gadolinium was 0.426 mg/L. Two test samples were conducted to evaluate the performance of the device. The results demonstrated that the discrepancies were within 10%, which indicate the developed system can be successfully used for on-line monitoring of gadolinium. • Neutron induced gamma activation technique was applied for the on-line measurement of gadolinium. • An 241Am–Be neutron source, a liquid scintillation detector and six 3He detectors were used to develop the device. • The neutron self-shielding effect was corrected by using Monte Carlo simulations and experimental data. [ABSTRACT FROM AUTHOR]