Mg-5Al-0.3Mn-1Ce alloy was prepared by metal mould casting method. The as-cast ingot was homogenized and hot-rolled with total thickness reduction of 61% after four passes. Texture, microstructure and mechanical properties of the studied alloy were investigated. Results showed that the as-cast sample was mainly composed of a-Mg, Mg17Al12 and Al11Ce3 phases. Average grain size of the as-cast sample was about 500 μm. After hot-rolling, average grain size was greatly refined to about 20 μm. Further more, the long acicular Al11Ce3 phase was smashed to small pieces. Tensile test results demonstrated that ultimate tensile strength and yield strength of the hot-rolled sample were improved by 65.2% and 165% respectively compared with those of the as-cast sample. Strength enhancement was attributed to grain refining strengthening and dislocation strengthening mechanisms.