The ageing behavior of an extruded Mg-7Y-4Gd-0.5Zn-0.4Zr alloy during ageing at 250 degrees C has been investigated. Two types of phases have been observed during the ageing process. One is a lamellar phase with a 14H long periodic stacking structure, the other is the beta' phase with an ellipsoidal morphology. The increased mechanical properties of the peak-aged alloy are mainly ascribed to the presence of both of these phases at peak hardness. (C) 2009 Elsevier B.V. All rights reserved.