The evolution of the microstructure during compression is investigated with in situ synchrotron radiation diffraction in as-cast ZK40, ZK40-2CaO and ZK40-1Y Mg alloys. The specimens were compressed at 350 °C with a strain rate of 10^-3 s^-1 until 30% deformation. The Y containing alloy showed the highest 0.2% proof strength in compression of 35 MPa at 350 °C which is double that of the ZK40 alloy, while the CaO added alloy shows a moderate increment at 23 MPa. The Y containing alloy shows some work hardening, while the CaO modified and the ZK40 alloys do not show work hardening after yield. Synchrotron radiation diffraction timelines show that continuous and discontinuous dynamic recrystallization occurs during deformation of the ZK40 alloy while a small amount of dynamic recrystallization was observed in the ZK40-1Y alloy. However, dynamic recrystallization was not present in the ZK40-2CaO alloy. SEM-EBSD analysis conducted on the deformed samples shows a significantly high volume fraction of twins in the Y and CaO containing alloys which was absent in the ZK40 alloy. The modified deformation behaviours observed in the CaO and Y containing alloys were attributed to the presence of intermetallic particles found at the grain boundaries and to the role of Ca and Y in stabilising twinning.