Mg-Gd-Y-Zr alloy was purified by the method of filtering purification. The type, morphology, size distribution and volume fraction of inclusions in the alloy were analyzed using optical microscope and scanning electron microscope, and the effects of the inclusions on the mechanical and corrosion properties of the alloy were investigated. The results indicate that the filtering purification method is effective to remove inclusions in the alloy. By the filtering purification method, the average size of inclusions in the alloy reduces from 12.7 mm to 4.3 mm and the average volume fraction of inclusions in the alloy reduces from 0.26% to 0.06%. The ultimate tensile strength, yield strength and elongation of the alloy are improved from 200 MPa, 156 MPa and 3.4% to 232 MPa, 167 MPa and 7.0%, respectively. The corrosion rate of the alloy decreases dramatically from 38.8g/(m2-d) to 2.5 g/(m2-d) in the salt spray test.