The microstructure, texture and mechanical properties of Mg-1.5 mass%Zn-0.2 mass%Ce alloys extruded at different extrusion temperatures were investigated. A ''rare earth (RE)'' texture component, which laid at about 20 from h2 1 1 1 10i in an inverse pole figure, appeared in the as-extruded specimen, only when the extrusion temperature was set to 703 K. It is suggested that a high extrusion temperature of around 723 K is essential for the formation of RE texture component. Electron back-scatter diffraction (EBSD) measurements revealed that the RE texture component originated from dynamic recrystallized grains in the band microstructure around the unrecrystallized grains, in contrast to the results of previous studies, in which it originated from shear bands in the unrecrystallized grains. The specimen extruded at 703 K and subsequently annealed showed a lower yield stress and higher ductility than that extruded at 573 K and subsequently annealed, owing to the wider spread of texture originating from the RE texture component in the as-extruded specimen.