The differences in microstructural characteristics, mechanical properties, and corrosion behavior of the as-cast and solution-treated Mg-xGd-1.5Nd-0.5Zn-0.5Zr alloys (Mg-xGd, x = 1, 3, and 5) were studied and discussed. The as-cast Mg-xGd alloys mainly consisted of an α-Mg and island-like eutectic (Mg,Zn)3RE phase, a few cuboidal phases (REH2), and a ZnZr phase. With the increase of Gd content, the grain sizes of the as-cast Mg-xGd alloys decreased. Compared to the microstructure of the as-cast Mg-xGd alloys, the eutectic (Mg,Zn)3RE phase disappeared and the cuboidal REH2 phases existed in the solution-treated Mg-xGd alloys. A large amount of ZnZrx phase was precipitated from α-Mg in the Mg-3Gd alloy and demonstrates a flower-like distribution. The ultimate tensile strength (UTS) and yield strength (YS) of the solution-treated Mg-xGd alloys increased with an increasing Gd content, with the UTS and YS of the Mg-5Gd alloys reaching 217.5 and 125.2 MPa, respectively. Immersion and electrochemical tests showed that the as-cast Mg-3Gd alloy presented the best corrosion resistance with a corrosion rate of 0.285 mm/yr. The corrosion resistance of the solution-treated Mg-3Gd alloy attained the lowest value (0.973 mm/yr), due to the large quantities of ZnZrx with a flower-like phase distribution, forming series of galvanic couple groups with the α-Mg.