The influences of hot forging and ageing treatment on the microstructure and mechanical properties of Mg−8Gd−2Y−1Nd−0.3Zn−0.6Zr (wt.%) alloy have been investigated. The results showed that the grains were significantly refined after hot forging. And the secondary phases in this alloy i.e. Mg5(Gd1-x-yNdxYy) and Mg24(Y1-x-yGdxNdy)5 phases were fragmented to small particles due to the large strain during hot forging. Tensile tests revealed that mechanical properties were improved due to grain size refinement. Moreover, the as-forged alloy exhibited remarkable age-hardening response and mechanical properties were further improved by ageing treatment. The ultimate tensile strength, yield strength and elongation of the peak-aged (T5) alloy are 286 MPa, 245 MPa and 5.6 % at room temperature, and 211 MPa, 103 MPa and 19.4 % at 300°C, respectively.