•Large magnetoresistance observed in La0.2Gd0.5Ba0.3MnO3 compound.•Results analyzed considering disorder induced short range interaction.•Size disorder plays vital role for colossal magnetoresistance. The observation of significantly large magnetoresistance at the liquid nitrogen temperature range in the polycrystalline La0.2Gd0.5Ba0.3MnO3 (LGBMO) compound has been addressed in the present manuscript. The motivation of considering LGBMO sample is the average ‘A’ site ionic radius 〈rA〉 and tolerance factor (t), almost same as that of La0.7Sr0.3MnO3 (LSMO), which is a well studied colossal magnetoresistive material. Magnetoresistance of the LGBMO compound has been compared with the LSMO as well as parent compound La0.7Ba0.3MnO3(LBMO) to show the enhancement of magnetoresistance in LGBMO compound. This observed nature has been elucidated considering the disorder induced short range magnetic interaction due to the enhance size disorder parameter (σ2). Our study revels that, size disorder parameter plays the crucial role for enhancing the colossal magnetoresistance.