Novel Mg-Co binary alloys with BCC (body-centered cubic) structure have been successfully synthesized by means of mechanical alloying technique. The formation of BCC structure was confirmed by X-ray diffraction and transmission electron microscopy. Mg-Co alloys were found in the range of Co concentration between 37 and 80 atomic %. All the Mg-Co alloys synthesized absorbed hydrogen below 373K. The maximum hydrogen capacity of these alloys reaches 2.7 mass %. However, desorption of hydrogen at 373 K has not been observed yet. Mg- Co-X (X = B and Ni) ternary alloys with BCC structure have also been synthesized. The lattice parameter of both alloys is lower than that of Mg-Co binary alloys, meanwhile the maximum hydrogen content of both alloys also decreased.