Muon spin rotation/relaxation spectroscopy has been employed to study electron localization into a bound magnetic polaron around the positive muon in the 3d magnetic spinel semiconductor CdCr2Se4 at temperatures up to 300 K (far above the ferromagnetic transition at Tc = 130 K) in magnetic fields up to 7 T. Electron localization into a magnetic polaron occurs due to its strong exchange interaction with the magnetic 3d electrons of local Cr(3 +) ions, which confines its wavefunction to within R≈0.3 nm, allowing significant overlap with both the nearest and the next nearest shells of Cr ions. Formation of such magnetic polarons may explain peculiar electronic and magnetic properties of magnetic semiconductors.