In order to reinforce the mechanism of Ag in 5xxx aluminum alloys with low magnesium, research on the microstructure and mechanical properties of an Al-Mg-Mn-Ag-Cr-Zr alloy was conducted using optical microscopy (OM), scanning electron microscopy (SEM), transmission electron microscopy (TEM), hardness measurement, and tensile testing. The as-cast microscopic structure of the alloy comprises the Al6(Mn, Fe) phase and the T-Mg32(Al, Ag)49 phase. Changes in the characteristics of the investigated alloy were clear during the aging process. Based on the findings obtained from TEM and SAED analysis, it was evident that the predominant strengthening phase during the peak-aged stage is the β″ phase, observed when the alloy is aged for 24 h at 160 °C. The β″ phase had a L12-type crystal lattice architecture and presented a completely coherent relevance with the Al-matrix. The lattice parameter, a, of the β″ phase was 0.408 nm. The mechanical properties of the peak-aged alloy increased greatly as compared to the as-quenched alloy. The tensile strength exhibited a rise from 410 MPa to 449 MPa, representing a 9.5% increase, while the yield strength demonstrated an increase from 185 MPa to 273 MPa, indicating a significant enhancement of 47.5%. The method used in the present study has solved the problem of 5xxx aluminum alloys not being heat treatable for strengthening to a significant degree, considerably improving the alloy strength. In addition, new methods and foundations for exploiting new-type Al-Mg based alloys and developing high-strength aluminum alloys are provided in this study.