We study a cast Mg‐4.65Al‐2.82Ca alloy with a microstructure containing an α‐Mg matrix, reinforced with a C36 Laves phase skeleton. Such ternary alloys are targeted for elevated temperature applications in automotive engines, since they possess excellent creep properties. However, in application, the alloy may be subjected to a wide range of strain rates, and thus accelerated testing is often essential. It is, therefore, crucial to understand the effect of such rate variations. Here, we focus on their impact on damage formation. Our analysis is based on high resolution panoramic imaging using scanning electron microscopy, combined with automated damage analysis using deep learning for object detection and classification (YOLOv5). We find, that with decreasing strain rate the dominant damage mechanism for a given strain level changes: at a strain rate of 5•10‐4/s, the evolution of microcracks in the C36 Laves phase dominates damage formation. However, when the strain rate is decreased to 5•10‐6/s, interface decohesion at the α‐Mg/Laves phase interfaces becomes equally important. We also observe a change in crack orientation, indicating an increasing influence of plastic co‐deformation of the α‐Mg matrix and Laves phase. We attribute this transition in the leading damage mechanism to thermally activated processes at the interface.This article is protected by copyright. All rights reserved.