The formation of ultrafine-grained structure is very desirable in the microstructural design of magnesium alloys, in particular Mg-Zn-Ca medical alloy, for a substantial increase in their strength and corrosion resistance. However, conventional processing of these alloys by equal channel angular pressing is not easily applicable due to their low deformability, which often leads to rapid fracture of billets. In this paper, computer simulation data and principles of physical mesomechanics are used to demonstrate that preliminary deformation of Mg alloy billets by reduction at high temperatures and low strain rates significantly increases their deformation capacity and enables equal channel angular pressing at lower temperatures, resulting in billets with ultrafine-grained structure. Consideration is given to the physical nature of the established effect.