Gd-based amorphous alloys with excellent glass forming ability (GFA) exhibit outstanding magnetocaloric effect (MCE) at low temperature, but their GFA and MCE decrease dramatically with the increasing Curie temperature (Tc). In order to develop MCE materials suitable for room temperature refrigeration, it is urgent to further explore Gd-based amorphous alloys with enhanced MCE at or above room temperature. In this work, Tc of the Gd50Co50 amorphous alloy was successfully improved to room temperature by 2% (at. %) Fe substitution for Gd, accompanied with the enhanced GFA of the binary amorphous alloy. The maximum adiabatic temperature change of the Gd48Co50Fe2 amorphous alloy is at least 65% higher than those of the other metallic glasses at temperatures higher than 290 K. The results indicate that the Gd48Co50Fe2 amorphous alloy is a better candidate for magnetic refrigerant at room temperature. •The GFA of the Gd50Co50 amorphous alloy was obviously improved by 2% (at. %) Fe substitution for Gd.•Tc of the Gd50Co50 amorphous alloy was successfully improved to room temperature by 2% (at. %) Fe substitution for Gd.•The maximum ΔTad of the Gd48Co50Fe2 ribbon is almost the highest in amorphous alloys at or above room temperatures.