This paper describes the details on synthesizing nanocrystalline Gd2BaCuO5 (Gd211) using low-temperature combustion synthesis(LCS). The morphology and structure of the powders are characterized by field emission scanning electron microscopy (FESEM) and XRD. The size of obtained powders by this method calcined at 800 C is about 100nm, which is much smaller than the powders synthesizing by conventional solid state route. Besides, the Gd211 powders synthesizing by LCS have a low calcination temperature with a high-purity. The microstructure of melt-textured samples is also observed by FESEM, the result shows that the size of Gd211 particles trapped in GdBa2Cu3O7 (Gd123) matrix could be refined by using ultrafine Gd211 powder as a precursor. The refined Gd211 particles with a good distribution resulted in the improvement of Jc values in this system.