The addition of Zn to the Mg-Nd system improves the yield strength and creep resistance, however its influence on the intermetallic phases in the ternary system is not yet fully understood. Understanding the sequence of phase-formation and phase-evolution during solidification and processing is essential to microstructure design. The solidification was investigated with in-situ synchrotron radiation-diffraction and tomography during cooling from the molten state to 200°C to investigate the phase-formation and transformation characteristics. The solidification starts with α-Mg followed by two distinct intermetallic phases T2 and T3. The results suggest that Zn stabilizes the Mg₃Nd phase and accelerates precipitate formation. The dendritic morphology changes during solidification towards coarser shapes, thus impedes feeding and promotes hot tearing.