The microstructure and mechanical properties of the Mg97Zn1Y2 alloy prepared by spark plasma sintering of gas atomized powders have been investigated. After consolidation, precipitates were observed to form in the α-Mg solid solution matrix of the Mg97Zn1Y2 alloy. These precipitates consisted of Mg12YZn and Mg24Y5 phases. The density of the consolidated bulk Mg-Zn-Y alloy was 1.86 g/cm3. The ultimate tensile strength and elongation were dependent on the consolidation temperature, which were in the ranges of 280 to 293 MPa and 8.5 to 20.8 %, respectively.