Muon spin rotation/relaxation spectroscopy %(supported by magnetization measurements) has been employed to study electron localization around a donor center - the positive muon - in the 3d magnetic spinel semiconductor CdCr$_2$Se$_4$ at temperatures from 2 to 300 K in magnetic fields up to 7 T. A bound state of an electron around a positive muon - a magnetic polaron - is detected far above the ferromagnetic transition up to 300 K. 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 wave function within Rapprox 0.3 nm, allowing significant overlap with both the nearest and next nearest shells of Cr ions.
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