The dynamic deformation behavior of an as-extruded Mg-Gd-Y magnesium alloy was studied by using Split Hopkinson Pressure Bar (SHPB) apparatus under high strain rates of 102 s-1 to 103s-1 in the present work, in the mean while the microstructure evolution after deformation were inspected by OM and SEM. The results demonstrated that the material is not sensitive to the strain rate and with increasing the strain rate the yield stress of as-extruded Mg-Gd-Y magnesium alloy has a tendency of increasing. The microstructure observation results shown that several deformation localization areas with the width of 10mm formed in the strain rates of 465s-1 and 2140s-1 along the compression axis respectively, and the grain boundaries within the deformation localization area are parallel with each other and are perpendicular to the compression axis. While increasing the strain rate to 3767s-1 the deformation seems become uniform and all the grains are compressed flat in somewhat. The deformation mechanism of as-extruded Mg-Gd-Y magnesium alloy under high strain rate at room temperature was also discussed.