The Mg96Y3Zn1 alloy processed by equal channel angular pressing has been investigated. It was found that the Mg96Y3Zn1 alloy processed by ECAP obtained ultrafine grains and exhibits excellent mechanical properties. After ECAP, the average grain size of Mg96Y3Zn1 alloy refined to about 400 nm. The highest strengths with yield strength of 381.45MPa and ultimate tensile strength of 438.33MPa were obtained after 2 passes at 623K. It was found that cracks were preferentially initiated and propagated in the interior of X-phase during the tensile test. As a result, the elongation of alloy is decreased with pass number increasing.