The characteristic of dynamic recrystallization (DRX) in Mg-Y-Nd-Gd-Zr magnesium alloy had been investigated by compression test at temperatures between 523 and 723K and the strain rates ranging from 0.002 to 1s-1with maximum strain of 0.693. The flow behavior was described by a power exponent function. Processing map of this alloy was established on the basis of dynamic material model. Microstructure observations suggested that the peak value of dissipation factor was 0.36 at the temperature of 673K and the strain rate of 1s-1. The map exhibits flow instabilities as two domains, one is at the lower temperatures but higher strain rates, and the other is at higher temperatures and lower strains.The region at an intermediate temperature and a high strain rate is the region of the optimal mechanical working properties.