A ZK60 magnesium alloy was subjected to isothermal rolling (IR) at 275 and 300°C. This processing resulted in grain refinement through dynamic recrystallization (DRX) at both temperatures. The recrystallized volume fractions of 82 and 95% and average sizes of fine grains of 2.5 and 3.7 µm were achieved after IR at 275 and 300°C, respectively. It was shown that the ultrafine-grained structure produced by DRX at 300°C exhibited higher stability under following static and dynamic annealing than that produced at 275°C. This fact was attributed with the formation of a less constrained DRX structure at higher temperature of IR. As a result, the sheet produced from the ZK60 alloy at 300°C showed superior superplastic properties. Conversely, it was not feasible to enhance the superplastic properties in the ultrafine-grained alloy produced at 275°C because significant grain growth occurred during further processing of the as-rolled alloy.