Addition of RE elements to Al-containing Mg alloys can improve properties of Mg alloys at elevated temperatures. In the present investigation, hot-extruded AZ31+x%Nd. (x=0.1,0.3,0.6and1.0 wt%) wrought Mg alloy were prepared .The effects of Nd on microstructures and mechanical properties at room temperature of new alloy were investigated. The investigation found that Nd can bring about two kind of precipitation phases . One is AlNd phase, the other is AlNdMn phase, which were identified as Al11Nd3 and Al8NdMn4 by X-ray diffraction and TEM.