Magnetization and magnetoresistance studies have been carried out on Ho0.85Tb0.15Mn2 and Ho0.85Tb 0.15Fe2. The saturation magnetization of Ho 0.85Tb0.15Mn2 is found to be large compared to Ho0.85Tb0.15Fe2. A large negative magnetoresistance of 27% was observed for Ho0.85Tb 0.15Mn2 around the ordering temperature. In the paramagnetic region, a positive magnetoresistance at lower magnetic fields and negative magnetoresistance is at higher magnetic fields have been observed for Ho0.85Tb0.15Mn2. A positive magnetoresistance of 3.5% with a step-like behavior has been observed for Ho0.85Tb 0.15Fe2 at 5 K. © 2005 Elsevier B.V. All rights reserved.