In this work, a new (Y, Gd)H 2 precipitate was identified and systematically investigated in the ascast Mg-6Gd-3Y-0.5Zr alloy by XRD, SEM with EDS, TEM with EDS techniques and thermodynamics analysis. Results show that the as-cast alloy contains α-Mg, Mg 24 (Gd, Y) 5 , and (Y, Gd)H 2 phase. The (Y, Gd)H 2 phase usually forms near the eutectic phase Mg 24 (Gd, Y) 5 or in the α-Mg grains, displaying a rectangle-shape. The Mg 24 (Gd, Y) 5 and (Y, Gd)H 2 phases crystalize in bcc and fcc structure, respectively, and the (Y, Gd)H 2 phase has a semi-coherent relationship with α-Mg matrix. The thermodynamics calculation results reveal that the hydrogen dissolved in the melt leads to the formation of hydrides. It is also found that the (Y, Gd)H 2 hydride can form directly from the liquid phase during solidification. Additionally, it can precipitate by the decomposition of Mg 24 (Gd, Y) 5 phase due to absorbing hydrogen from the remaining melt.