The Mg-8Zn-8Al-4RE (RE = mischmetal, mass%) magnesium alloy was prepared by using casting method. The microstructure and mechanical properties of as-cast alloy, solid solution alloy and aged alloy samples have been investigated. Optical microscopy, X-ray diffractometery and scanning electron microscope attached energy spectrometer were used to characterize the microstructure and phase composition for the alloy. Net shaped τ-Mg32(Al,Zn)49 phase was obtained at the grain boundary, and needle-like or blocky Al11RE3 phase disperses in grain boundary and α-Mg matrix. The τ-Mg32(Al,Zn)49 phase disappeared during solution treatment and a new phase of Al2CeZn2 formed during subsequent age treatment. The mechanical properties were performed by universal testing machine at room temperature, 150 °C and 200 °C, separately. The ultimate tensile strength of as-cast alloy is lower compared to an age treatment alloy at 200 °C for 12h. The strengths decreased with enhancing test temperature, but elongation has not been effect by age treatment.