Variation in the microstructure of Mg-5%Al semi-solid slurry during isothermal heating was investigated in relation to initial microstructure, holding time, and holding temperature. Specimens with three different initial microstructures were isothermally heated. Dendritic structure in as-cast ingot was decomposed into solid globules in the semi-solid slurry during isothermal holding, while in the recrystallized specimens prepared by extrusion or rolling the size of solid particles was continuously increased during the heating. Effects of mold temperature and liquid fraction of slurry on the mold filling ability were also studied. Very thin section (0.4 mm) could be successfully filled up to 50 mm by 60% liquid slurry when the mold was heated to $600^{circ}C$.