The deformation characteristics of the WE54 magnesium alloy reinforced by 13% of SiC particles have been investigated in tension at elevated temperatures. Composite material was prepared by powder metallurgy technique. The strain rate sensitivity parameter m has been estimated by the abrupt strain rate changes (SRC) method. SRC tests and tensile tests with constant strain rate ( ) were performed at temperatures from 350 to 500 °C. Increased ductility has been found at high strain rates. The corresponding m value was 0.3. The activation energy Q has been estimated. Microstructure evolution has been observed by the light microscope and scanning electron microscope.