The high temperature compressive tests of squeeze casting ZK60 magnesium alloy with temperatures of 573-723K and strain rate in the range of 0.001-1s-1 were performed on Gleeble-1500D thermal simulator testing machine. Optical microscopy was performed to elaborate on the dynamic recrystallization (DRX) grain growth. TEM findings indicate that mechanical twinning, dislocation slip, and dynamic recrystallization are the materials typical deformation features. Variations of flow behavior with deformation temperature as well as strain rate were analyzed. Analysis of the flow behavior and microstructure observations indicated that flow localization was observed at lower temperature and higher strain rates, which should be avoided during mechanical processing. Dynamic recrystallization occurred at higher temperature and moderate strain rates, which improved the ductility of the material. The optimum hot working conditions for ZK60 alloy were suggested.