Microstructure and mechanical property changes brought by the addition of Nd element in Mg-5wt%Zn-2wt%Al alloy are investigated, results show Al element takes a priority to react with Nd element over Mg and Zn, forming binary phases Al(2)Nd or Al11Nd3, tensile test showed that the total elongation is improved by the addition of Nd, and the UTS is also elevated when the Nd content surpass 1wt%. With a larger Nd addition, the phase dominating grain boundary is Al11Nd3 phase.