The Mg-12Gd-2Y-0.5Sm-0.5Sb-0.5Zr (wt.%) alloy was prepared by casting technology. The microstructure was investigated after solution and aging treatment (i.e. T6 heat treatment). Tensile tests were performed at a crosshead speed of 1 mm/min at ambient and elevated temperature atmosphere. The results show that the aged alloy was mainly composed of α-Mg matrix, Mg5Gd phase and dispersed long-period ordered β' precipitates. At 523K, the alloy has shown the superior tensile strength (i.e. 345.5 MPa). The strength mechanism was solution strengthening of RE and precipitation strengthening of dispersive LPO structure β' and stable Mg5Gd precipitates in Mg matrix.