This work presents experimental investigation of 14 different alloys with differential scanning calorimetery (DSC), scanning electron microscopy/energy dispersive spectrometer (SEM/EDS) analysis, quantitative electron probe micro-analysis (EPMA) and X-ray diffraction (XRD) techniques to identify the phases in the Mg-Al-Sr system and to determine their compositions. DSC has permitted real time measurement of the phase changes involved in these systems. The temperature ranges for the phase transformations and enthalpy of melting and enthalpy of formation of the compounds are reported. Comparison between these results and the thermodynamic findings has been discussed. The microstructure of the Mg-Al-Sr-based alloys is primarily dominated by (Mg) and (Al4Sr). The plate-like structure has been identified as Al4Sr. A new ternary intermetallic with chemical composition of 69.9 ± 1.5 at.% magnesium, 19.3 ± 2.0 at.% aluminum and 8.7 ± 0.6 at.% strontium has been identified in three different alloys. This phase was characterized as a large precipitate. Three ternary solid solutions have been observed. The solubility ranges of Al in Mg38Sr9 and Mg17Sr2 are 12.5 and 8.5 at.%, respectively, whereas the solubility of Mg in Al4Sr compound is found to be 23 at.% in the investigated samples. Further, Mg was found to dissolve 11.4 at.% Al at room temperature.