The effects of rare earth erbium (Er) micro-additions on the microstructures and mechanical properties of 2024 aluminum alloy were investigated. The microstructures and fracture surfaces of specimens prepared via high-energy ball milling, cold isostatic pressing and microwave sintering were carried out by optical microscopy (OM) and scanning electron microscopy (SEM). Under the conditions of sintering heating rate of 20 min/°C and soaking time of 30 min at 490 °C, it was found that with the increase in Er addition, the grain size first decreased then increased, and it reached a minimum size of about 5 μm when the Er content was 0.6%, showing that the grains were refined. At the same time, the compactness and microhardness reached maximum levels, which were 97.6% and 94.5 HV, respectively. Moreover, the tensile strength and elongation reached the peak at 160.5 MPa and 4.4%, respectively. The dynamic mechanical response of Er/2024Al alloy with different Er content was studied through a split Hopkinson pressure bar (SHPB) at strain rates of 600 s−1 and 800 s−1, respectively. Both at the strain rates of 600 s−1 and 800 s−1, the dynamic yield stress of the specimens increased gradually with an increase in Er content. For the 0.6 wt.% Er specimen, the dynamic yield stress reached 371.3 MPa at a strain rate of 800 s−1, which was 28.2% higher than that at a strain rate of 600 s−1. When the strain rate is 800 s−1, the deformation degree of the 0.6 wt.%Er specimen is 55.3%, which is 14.7% higher than for the Er-free one, and there are adiabatic shear bands formed in the 0.6 wt.%Er specimen. Through a fracture analysis of the samples, a certain number of dimples appeared in the fracture of an impact specimen, indicating that the addition of Er improved the toughness of the material. This research can provide a reference for the development and application of high-performance aluminum alloy in automotive structural materials.