By introducing heterogeneous lamella-structure, we obtained a superior strength-ductility synergy in Mg-alloy associated with excellent strain-hardening ability, i.e. yield strength of ∼251 MPa, tensile strength of ∼393 MPa and elongation of ∼23%. By using advanced characterization techniques, we showed that strengthening was mainly caused by the non-uniform distribution of hetero-deformation induced (HDI) stress associated with grain-boundary disclinations, which are mediated by heterogeneous multi-grain interactions. Induced by grain-boundary disclinations and intergranular slip transfers, a variety of abnormal deformation modes have been activated,which contributed significantly to enhanced ductility. This work suggests a new avenue to evade strength-ductility trade-off dilemma in Mg-alloys. GRAPHICAL ABSTRACT IMPACT STATEMENT The heterogeneous lamella-structure leads to sustained strain-hardenability in Mg-alloy with unique accommodating deformation modes (extensive abnormal slips and feather-shaped twins), induced by grain-boundary disclinations and intergranular slip transfers.