Microstructures and phase compositions of as-cast and extruded ZK60-xGd (x=0-4) alloys were investigated. Meanwhile, the tensile mechanical property was tested. With increasing the Gd content, as-cast microstructure is refined gradually. Mg-Zn-Gd new phase increases gradually, while MgZn2 phase decreases gradually to disappear. The second phase tends to distribute along grain boundary by continuous network. As-cast tensile mechanical property is reduced slightly at ambient temperature when the Gd content does not exceed 2.98%. After extrusion by extrusion ratio of 40 and extrusion temperature of 593 K, microstructure is refined further with decreasing the average grain size to 2 μm for ZK60-2.98Gd alloy. Broken second phase distributes along the extrusion direction by zonal shape. Extruded tensile mechanical property is enhanced significantly. Tensile strength values at 298 and 473 K increase gradually from 355 and 120 MPa for ZK60 alloy to 380 and 164 MPa for ZK60-2.98Gd alloy, respectively. Extruded tensile fractures exhibit a typical character of ductile fracture.