Equal channel angular pressing (ECAP) processing and conventional extrusion (Ex) were applied to the Mg-12Gd-3Y-0.5Zr (wt%) magnesium alloy in order to evaluate the potential improvement in the mechanical properties. The ECAP experiment was conducted at 380 ℃ in a die having an included angle of 90° between two channels by the Bc route with the billet rotated by 90° about its longitudinal axis. Subsequently, some billets were processed by conventional extrusion at 300 ℃. The microstructures were examined by X-ray diffraction (XRD), optical microscopy and transmission electron microscopy (TEM). The experimental results indicate that the grain size is refined effectively, but the basal planes are highly inclined (about 40o) from the extrusion axis introduced by ECAP, which impairs the grain boundary strengthening effect. The conventional extrusion, following the ECAP, can modify the grains in hard orientation. Based on grain boundary strengthening due to ECAP and texture strengthening due to Ex, the strength is improved effectively. The enhanced activity of the non-basal slips, due to the refined grains and the reduction in c/a ratio, is responsible for good ductility and high strain hardening rate in samples obtained by the two-step process. Equal channel angular pressing (ECAP) processing and conventional extrusion (Ex) were applied to the Mg-12Gd-3Y-0.5Zr (wt%) magnesium alloy in order to evaluate the potential improvement in the mechanical properties. 380 ° C in a die having an included angle of 90 ° between two channels by the Bc route with the billet rotated by 90 ° about its longitudinal axis. The experimental results indicate that the grain size is refined effectively, but the basal planes are highly inclined (about 40 °) from the extrusion axis introduced by ECAP, which impairs the conventional extrusion, the following the ECAP, can modify the grains in hard orientation. Based on grain boundary strengthening due to ECAP and texture strengthen ing due to Ex, the strength is improved effectively. The enhanced activity of the non-basal slips, due to the refined grains and the reduction in c / a ratio, is responsible for good ductility and high strain hardening rates in samples obtained by the two-step process.