We have investigated the structure and mechanical properties of ternary Mg97Zn1RE2 (RE=Y, La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er and Yb) melt-spun ribbons annealed at 573 K for 1.2 ks, in order to develop new alloy compositions suited for rapidly solidified powder metallurgy (RS P/M) processing. The Mg97Zn1RE2RS alloys were divided into three groups. The first is a group with RE of Gd, Tb, Dy, Ho and Er, the second of Nd, Sm. and Pr, and the third of Y, La, Ce, Eu and Yb. The third group had much higher hardness as compared with the other groups. Especially, the annealed Mg97Zn1Y2 and Mg97Zn1Yb2 RS ribbons exhibited a combination of high hardness and good ductility. It is expected that RS P/M alloy with good ductility and high strength will be developed in the composition of Mg97Zn1Yb2 hereafter.