Mg-13Gd-4Y-2Zn-0.4Zr (wt. %) alloy bar produced by three passes reciprocating upsetting extrusion (named as RUE-ed bar) exhibited fine grain with the average grain size of 3.02 μm. Hot compression tests of the RUE-ed bar were carried out on Gleeble-3800 compression unit at different deformation temperatures (653, 683, 713, and 743 K) and strain rates (0.001–1 s, 0.01–1 s, 0.1–1 s, and 0.5–1 s). This alloy showed work hardening and softening stages in hot compression, the thermal activation energy of the RUE-ed bar was 150 ± 1 kJ/mol and the constitutive equation was: ε˙=1.80×109[sinh(0.0174σ)]2.47exp[−150×1038.314×T]. Numerous Mg5 (Gd, Y, Zn) phase re-dissolved in α-Mg matrix appeared in the RUE-ed samples during hot compression deformation. The movement of the dislocation stimulated the re-dissolution of the Mg5 (Gd, Y, Zn) phase. The re-dissolution of Mg5 (Gd, Y, Zn) phase promoted texture strengthening and DRX grains growth in this experiment. In addition, the transformation and kinking of LPSO phase played an important coordinating role in the process of hot compression; 18R-LPSO was changed to 14H-LPSO phase at low strain rate while the LPSO phase kinked dominant to coordinated deformation at high strain rate.