In order to improve the corrosion and mechanical properties of AM50 magnesium alloy, 1 wt.% Gd was used to modify the AM50 magnesium alloy. The microstructure, corrosion and mechanical properties were evaluated by X-ray diffraction(XRD), scanning electron microscopy(SEM), energy dispersive spectroscopy(EDS), electrochemical and mechanical stretch methods. The results indicated that β-Mg17Al12 phase decreased and Al2Gd3 and Al0.4GdMn1.6 phase existed after Gd addition. Because of the Gd addition, the grain of AM50 magnesium alloy was refined significantly, which improved the tensile strength of AM50 magnesium alloy. The decreasing of β phase improved the corrosion resistance of the magnesium alloy. The fracture mechanism of the Gd modified AM50 magnesium alloy was quasi-cleavage fracture. The corrosion residual strength(CRS) of AM50 magnesium alloy was improved after 1 wt.% Gd addition. The order of improving the corrosion and mechanical properties of AM50 magnesium alloy, 1 wt.% Gd was used to modify the AM50 magnesium alloy. The microstructure, corrosion and mechanical properties were evaluated by X-ray diffraction (XRD) SEM), energy dispersive spectroscopy (EDS), electrochemical and mechanical stretch methods. The results indicated that β-Mg17Al12 phase decreased and Al2Gd3 and Al0.4GdMn1.6 phase existed after Gd addition. Because of the Gd addition, the grain of AM50 magnesium The decreased of β phase improved the corrosion resistance of the magnesium alloy. The fracture mechanism of the Gd modified AM50 magnesium alloy was quasi-cleavage fracture. The corrosion residual strength ( CRS) of AM50 magnesium alloy was improved after 1 wt.% Gd addition.