To explore room-temperature strengthening and high-temperature ductility, a lightweight novel Mg-1.85Gd-0.64Al-0.62Zn alloy was fabricated by innovative multidirectional forging and a hot-rolling technique. Microstructures and mechanical properties were studied at room and elevated temperatures with an optical microscope, an X-ray diffractometer, and a tensile tester. An ultimate tensile strength of 260 MPa, yield strength of 171 MPa, and elongation of 20.4% were demonstrated at room temperature. The room-temperature strengthening mechanisms were identified by strengthening the model estimation. A type C Portevin-Le Chatelier effect was discovered and elucidated in this alloy. X-ray diffraction analysis revealed that the phase composition is α-Mg solid solution and (Mg, Al)3Gd, Al7Zn3, and Al2Gd intermetallic compounds. Examination of the microstructure at elevated temperatures revealed that dynamic recrystallization and dynamic grain growth occur. In particular, it was discovered that bimodal microstructures or incomplete dynamic recrystallization microstructures exist in high-temperature deformation. A maximum quasi-superplasticity of 228.4% was demonstrated in this alloy at 673 K and 5.0 × 10−4 s−1. Flow stress curves showed that the present alloy exhibits Sotoudeh–Bate curves or a long intermediate strain-hardening stage followed by a strain-softening stage. A modified Zerilli–Armstrong constitutive equation incorporating the number of dislocations was established. The power-law constitutive equation was established to identify the deformation mechanism. Both constitutive models had good predictability. At 673 K and 5.0 × 10−4 s−1, the stress exponent was 4, and the average deformation activation energy was 104.42 kJ/mol. The number of dislocations inside a grain was 146. This characteristic evidence confirmed that dislocation motion controlled by pipe diffusion dominates the rate-controlling process under this condition.