The as-cast microstructure of Mg-5Al-3Ca-2Sm alloy consists of equiaxed α-Mg matrix, (Mg, Al)2Ca eutectic phase and Al-Sm rich intermetallic compounds. This eutectic phase of the extruded alloys was elongated to extrusion direction and size of this phase was finered compare to that of as-cast alloys because of severe deformation during hot extrusion. After hot extrusion, the average grain size of Mg-5Al-3Ca and Mg-5Al-3Ca-2Sm alloys was 4.8 *m and 3.8 *m, respectively. In load-unload hardness test, penetration depth was decreased with added Sm and after extrusion procedure because of grain size refining by addition Sm and large deformation. Hardness value of the alloys containing Sm was higher than that of Mg-5Al-3Ca alloy due to grain refining and formation Al-Sm rich intermetallic compound at gain boundary and α-Mg matrix. Maximum hardness value was obtained at the extruded Mg-5Al-3Ca-2Sm alloy at elevated temperatures.