In this work, friction stir additive manufacturing was successfully performed to fabricate the dual-phase Mg–Li–Al–Zn magnesium alloy. A fine-grained microstructure decorated by uniformly dispersed precipitates was observed in the stir zone. Through the combined effects of grain refinement and solid solution strengthening, the friction stir additive manufactured Mg–Li–Al–Zn alloy exhibited the synergistic enhancement of strength, ductility, and corrosion resistance.