As-cast ZK40 alloys, modified with the addition of CaO, Gd, Nd and Y were investigated. Solution heat treatments were performed based on differential thermal analysis results. The unmodified ZK40 alloy exhibited microstructure with nearly no intermetallic compound but with precipitates formed during the solution treatment. The modified ZK40 alloys exhibited a semi-dissolved network of intermetallic compounds along the grain boundaries and zones of intermetallic compounds within the grains. Interestingly, no precipitates were observed immediately next to the grain boundaries. The energy dispersive X-ray spectroscopy line scans showed an enrichment of Zn and Zr in the regions where the precipitates are found, suggesting that they are Zn-Zr precipitates. The ageing behaviour was compared between the as-cast and the solution treated materials and it was found that apart from the ZK40-Gd, ZK40-Nd and ZK40-Y aged at 200 °C after solution treatment, there is no notable ageing response for the investigated alloys.