The previous study conducted on the as-cast Mg-2Y-1Zn-0.6Zr alloy showed that the tensile strength, yield strength and elongation of the as-cast alloy were 245 MPa, 135 MPa and 14.4%, respectively. In order to further explore the potential of the material, the hot extrusion process of variable temperature (250 °C, 300 °C and 350 °C) was carried out on the basis of the as-cast alloy. After hot extrusion, the mechanical properties of the material have been greatly improved compared with as-cast alloy. The tensile strength, yield strength and elongation of the extruded alloy reached 327 MPa, 322 MPa and 24.9%, respectively. The reason for the significant improvement of material properties is mainly due to the dynamic recrystallization during thermal processing, which greatly fines the grains of as-cast alloy. Moreover, the experimental results shown that the corrosion performance of the alloy after hot extrusion at 300 °C is also optimal.