The microstructure and texture of extruded Mg-Gd alloys vary greatly with Gd content. An abrupt grain refinement occurs with 15 wt% Gd due to numerous precipitates. Texture orientation is gradually changed from the <2-1-11> to <0001> direction. Mg-15Gd alloy has an extraordinary texture with basal poles parallel to the ED. The tensile strength of the extruded alloys increase with increasing Gd content.