Abstract. Bulk ultrafine-grained Mg-3Al-Zn alloy has been made of elemental powders by mechanical milling, vacuum hot pressing and warm extrusion sequentially. As the only variable, ball milling time was 20 h, 40 h, 60 h and 80 h, respectively. Microstructural studies and mechanical strength were characterized by SEM, XRD, TEM and tensile tests. At 60 h, the particle size of the milled powders decreased to 10 m. With extension of time, the grain sizes of nanocrystalline powders were 41, 39.5, 38.5 and 38 nm. Under the same hot pressing and extrusion conditions, the grain sizes of extruded materials were 600, 565, 555 and 550 nm, respectively. The results of tensile tests showed that increasing milling time under 60 h improved the strength of the extruded alloys, however, reduced the ductility due to lower relative density and more defects. This also indicated that better ductility with high strength should be obtained if densification process was further improved. Meanwhile, the high ultimate strength of 419 MPa results from oxide dispersion strengthening and dislocation strengthening besides grain refinement strengthening.