Muon spin rotation and relaxation ($mu$SR) experiments have been carried out to characterize magnetic and superconducting ground states in the Pr$_{1-x}$Nd$_x$Os$_4$Sb$_{12}$ alloy series. In the ferromagnetic end compound NdOs$_4$Sb$_{12}$ the spontaneous local field at positive-muon ($mu^+$) sites below the ordering temperature $T_C$ is greater than expected from dipolar coupling to ferromagnetically aligned Nd$^{3+}$ moments, indicating an additional indirect RKKY-like transferred hyperfine mechanism. For 0.45 $le x le$ 0.75, $mu^+$ spin relaxation rates in zero and weak longitudinal applied fields indicate that static fields at $mu^+$ sites below $T_C$ are reduced and strongly disordered. We argue this is unlikely to be due to reduction of Nd$^{3+}$ moments, and speculate that the Nd$^{3+}$-$mu^+$ interaction is suppressed and disordered by Pr doping. In an $x$ = 0.25 sample, which is superconducting below $T_c$ = 1.3 K, there is no sign of spin freezing (static Nd$^{3+}$ magnetism), ordered or disordered, down to 25 mK. Dynamic $mu^+$ spin relaxation is strong, indicating significant Nd-moment fluctuations. The $mu^+$ diamagnetic frequency shift and spin relaxation in the superconducting vortex-lattice phase decrease slowly below $T_c$, suggesting pair breaking and/or possible modification of Fermi-liquid renormalization by Nd spin fluctuations. For 0.25 $le x le$ 0.75, the $mu$SR data provide evidence against phase separation; superconductivity and Nd$^{3+}$ magnetism coexist on the atomic scale.
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