Neutron-diffract ion and ac-susceptibility measurements have been performed to study the superconductivity and magnetic order of the Tb spins in polycrystalline TbSr2Cu2.69Mo0.31O7. Superconductivity with an onset temperature at 37 K was observed in the de electrical resistivity and ac-magnetic-susceptibility measurements. A two-step transition to the super-conducting state was seen, as both intragranular and Josephson-like intergranular losses were evident in the out-of phase component of the ac susceptibility. Magnetic correlations between the To spins start developing around 40 K, and the correlation length diverges at T-N-5.4 K with the nearest-neighbor Tb spins aligned antiparallel along all three crystallographic directions. Below 5.4 K, superconductivity and Tb magnetic order coexist.