The hot deformation and dynamic recrystallization (DRX) characteristics of an as-extruded Mg-2.5Zn-4Y alloy containing long-period stacking ordered (LPSO) phases were investigated using a Gleeble 3500 thermal simulator at temperatures (300–400 °C) and strain rates (0.001–1 s−1). The results revealed that low flow stress corresponded to a high temperature and a low strain rate. An increase in the temperature of deformation caused an increase in the amount of dynamic recrystallization. Additionally, as the strain rate decreased at a given deformation temperature, dislocations were less likely to cause pile-up and dynamic recrystallization was more appropriate, resulting in a lower stress value. Kink deformation was clearly minimized as the number of dynamic recrystallizations increased. The test alloy’s activation energy value was determined as 212.144 kJ/mol.