Mg-1.5%Zr-x%Cd alloys (x=0, 0.5, 1.0, 1.5, mass%) were prepared by PM (powder metallurgy) technology, and the microstructure, mechanical properties and damping capacities of the alloys were researched by OM, three-point bending test and DMA, etc. The results show that the microstructure becomes into strip or block shaped morphology, granular particles Zr appear at grain boundaries or inside grains, and the grains are more refined with the increase of Cd additions. Micro-hardness(HV) and bending strength(σbb) of the alloys increase with increasing addition of Cd. Damping capacities of the Mg-1.5%Zr-x%Cd alloys improves with Cd additions, and increase with the temperature. The damping peak temperature increases with increasing frequencies, showing the characteristic of relaxation damping.