Extruded Mg-Zn-RE alloys have been shown to exhibit excellent combinations of yield strength and ductility, but it is not completely clear how adding rare earth metals to Mg-Zn alters the microstructure and affects the mechanical properties. Microstructural changes and the resulting mechanical properties from changes in composition and extrusion temperature have been investigated for Mg-. x Zn-. y RE (. x=2.5 and 5. wt.%, y=0 and 1. wt. %, and RE=Gd and Y) alloys. Adding RE to Mg-Zn increased the strength and reduced the ductility, while increasing the zinc concentration in the Mg-Zn-RE alloys had the reverse effect.