This work is to report not only the effect of rapid solidification of $MgZn_{4.3}Y_{0.7}$ alloys on the micro-structure, but also the extrusion behavior on the materials properties. The average grain size of the atomized powders was about $3-4{mu}m$. The alloy powders of $Mg_{97}Zn_{4.3}Y_{0.7}$, consisted of I-Phase (Icosahedral, $Mg_{3}Zn_{6}Y_{1}$) as well as Cubic structured W-Phase ($Mg_{3}Zn_{3}Y_{2}$), which was finely distributed within ${alpha}-Mg$ matrix. The oxide layer formed along the Mg surface was about 48 nm in thickness. In order to study the consolidation behavior of Mg alloy powders, extrusion was carried out with the area reduction ratio of 10:1 to 20:1. As the ratio increased, fully deformed and homogeneous microstructure could be obtained, and the mechanical properties such as tensile strength and elongation were simultaneously increased.