In order to improve the weak mechanical properties of cast Mg alloys, Mg-$Zn_1Y_2$ (at%) alloy powders were synthesized using gas atomization, a typical rapid solidification process. The powders consist of fine dendrite structures less than 3 ${mu}m$ in arm spacing. In order to fabricate a bulk form, the Mg powders were compacted using magnetic pulse compaction (MPC) under various processing parameters of pressure and temperature. The effects of the processing parameters on the microstructure and mechanical properties were systematically investigated.