Over the past decades, the necessity to decrease the weight of automobile parts has created a considerable interest in magnesium allovs. The need to develop magnesium die casting alloys for car components motivates R&D in high temperature magnesium alloy development. In order to improve magnesium alloys with low cost, high strength and with notable elevated temperature properties, the effect of Ce addition (0.5/1.0 wt.-%) on microstructure and mechanical properties of AM50 was studied. Results show that addition of Ce to AM50 resulted in grain refinement and the formation of the secondary phase Al₁₁Ce₃. Mechanical properties of investigated alloys at both room and elevated temperature were remarkably increased. AM50 containing 1%wt. Ce showed relatively better refinement and mechanical properties compared to AM50 with 0.5%wt. Ce.