In this work, three Mg–Zn–Y–Ca alloys reinforced by icosahedral quasicrystal phase through trace Y addition were extruded at a low temperature of 503 K. With increasing the contents of Zn and Y, the grain size of the as-extruded alloy was significantly reduced while both the size and volume fraction of nanosized precipitates were increased. The grain refinement in the Mg–Zn–Y–Ca alloy was related to dynamical recrystallization during extrusion and the pinning effect of nanosized precipitates on the grain boundaries. After extrusion, the yield strength (YS) and ultimate tensile strength (UTS) of the three alloys were significantly increased. The YS of 294.0 MPa, UTS of 337.5 MPa, and elongation of 10.6% were obtained in the case of Mg–2.09Zn–0.26Y–0.12Ca (at.%) alloys. The improvement in the mechanical properties could mainly be due to the grain boundary strengthening and Orowan strengthening. The as-cast alloy exhibited a typical cleavage fracture while the as-extruded alloy possessed a mixture fracture of dimple fracture and cracking along the twinning.