This paper deals with the effect of microstructure condition on ignition temperature, mechanical and corrosion properties of commercial WE43 alloy prepared by various processing techniques including conventional casting, extrusion, and powder metallurgy methods such as spark plasma sintering. For different processing technique, differences in microstructures were observed, including different grain sizes, intermetallic phases, amount of alloying elements in the solid solutions, or specific structural elements. Mechanical and corrosion properties were improved especially by grain refinement. Precipitation from oversaturated solid solutions led to further improvement of mechanical properties, while corrosion resistance was just slightly decreased due to the fine and homogeneously distributed precipitates of Mg41Nd5. The obtained results indicate huge differences in ignition resistance based on the metallurgical state of the microstructure. An improved ignition resistance was obtained at the condition with a higher concentration of proper alloying elements (Y, Nd, Gd, Dy) in the solid solution and absence of eutectic phases in the microstructure. Thermally stable intermetallic phases had a minor effect on resulting ignition temperature.