The effect of Sr by Gd substitution on the structural, thermomechanical, electrical, and electrochemical properties of SrTi_0.5Fe_0.5O_3–δ was investigated in the present work. The powders were synthesized by a solid-state reaction method at 1150 °C with following sintering of the ceramic samples at 1350 °C. The unit cell parameters of the sintered Sr_1–xGd_xTi_0.5Fe_0.5O_3–δ (x = 0–0.4) ceramics were found to decrease with a gradual increase in Gd content, and a change in the crystal symmetry from cubic to tetragonal at x ≥ 0.1 was observed. It was found that the Gd doping enhanced the stability of the ceramic samples in a reducing atmosphere and reduced the thermal expansion coefficient value. Gd doping in the amount of 5 mol% can be used for long-term stabilization of the SrTi_0.5Fe_0.5O_3–δ material’s conductivity in reducing atmospheres with no significant alteration to the transport properties and oxygen permeability.