He was the second son of Cesare II Gonzaga, Duke of Guastalla and his wife, Dona Isabella Orsini (1598–1623).

He married in 1646 in Spain with María Inés Manrique de Lara, 10th Countess of Paredes de Nava.

They had five children:

• María Luisa Manrique de Lara y Gonzaga (1649–1721), 11th Countess of Paredes de Nava; married Tomás de la Cerda, 3rd Marquess of la Laguna, Viceroy of New Spain (1680-1686)
• Josef de Lara y Gonzaga (1683-1727)
• Maria Josefa Manrique de Lara y Gonzaga; married Don Antonio Caspar Pimentel Banoso de Ribera, 4th Marquesa de Malpica
• Isabella Manrique de Lara y Gonzaga; died young
• Diego Manrique de Lara y Gonzaga; died young

He was viceroy of Valencia between 1669 and 1675.