This paper presents the effect of hot-chamber HPDC (high-pressure die casting) process parameters on the porosity, mechanical properties, and microstructure of AM60 magnesium alloy. To reduce costs, a Taguchi design of the experimental method was used to optimise the HPDC process. Six parameters set at two levels were selected for optimisation, i.e., piston speed in the first phase, piston speed in the second phase, molten metal temperature, piston travel, mould temperature, and die-casting pressure (the pressure under the piston). Signal-to-noise (S/N) ratios were used to quantify the present variations. The significance of the influence of the HPDC parameters was assessed using statistical analysis of variance (ANOVA). The results showed that the die-casting pressure had the most significant influence on the porosity of the AM60 alloy. Moreover, piston speed in the first phase, second phase, and die-casting pressure had the most important effects on tensile strength. It is well known that porosity determines the mechanical properties of die castings; however, in AM60 alloy, changes in the HPDC parameters also contribute to microstructural changes, mainly through the formation of Externally Solidified Crystals.