The Mg-2%Nd alloy, thermally treated at 520°C and quenched, exhibits plastic instabilities at intermediate temperatures between 100°C and 300°C when it is compressively tested because of the dynamic strain aging phenomenon caused by the presence of neodymium atoms in solid solution. During compression tests, there is a competition between the precipitation of Mg-Nd particles and the DSA phenomenon, which depends largely on the test temperature. Thus, below 200°C, the formation of neodymium-rich precipitates is slow, and the interaction is insignificant. Under these conditions, the alloy exhibits a normal behavior of the DSA, i.e., the critical strain decreases with the increase in the test temperature. However, for test temperatures > 200°C, the formation of neodymium-rich precipitates is faster and the evolution of the critical strain with temperature is inverted because of the decrease of neodymium in solid solution.