Mg-8Li-(0-3)Ce alloys were prepared with a vacuum melting method. The microstructure and mechanical properties of these alloys were studied. It is found that addition of Ce obviously refines the grain size of the alloy and leads to the formation of intermetallic compound (Mg12Ce). Extrusion and rolling processes lead to the improvement of mechanical properties. The alloys after extrusion have better mechanical properties than those after rolling.