Magnesium and its rare-earth alloys are extensively studied for their lightweight properties and high specific strength, making them attractive for aerospace, automotive, and biomedical applications. However, their hexagonal close-packed structure leads to a strong basal texture, limiting plasticity and formability at room temperature. Considerable research has been devoted to texture control strategies, including alloying, thermomechanical processing, and recrystallization mechanisms, yet a comprehensive understanding of their effects remains an ongoing research focus. This review summarizes recent advances in texture regulation of rare-earth magnesium alloys, focusing on the role of RE elements (Gd, Y, Nd, Ce) and non-RE elements (Zn, Ca) in modifying basal texture and enhancing mechanical properties. The influence of key processing techniques, such as extrusion, rolling, equal channel angular pressing, and rotary shear extrusion, is discussed in relation to their effects on recrystallization behavior. Additionally, the mechanisms governing texture evolution, including continuous dynamic recrystallization, discontinuous dynamic recrystallization (DDRX), and particle-stimulated nucleation, are critically examined. By integrating recent findings, this review provides a systematic perspective on alloying strategies, processing conditions, and recrystallization pathways, offering valuable insights for the development of high-performance magnesium alloys with improved formability and mechanical properties.