Fine-grained magnesium alloy QE22 (Mg2.5wt.%Ag2.5wt.%RE0.6wt.%Zr) was prepared from cast ingot which was submitted to a two stages heat treatment.Subsequently the billet was overaged and extruded at high temperature.Samples were deformed at elevated temperatures from 380 • C up to 480 • C at various strain rates.Microstructure of deformed samples was studied using light and electron microscopy.