Mg–Al–Zn–Ca–Y alloys with excellent ignition and corrosion resistances—termed SEN alloys (where the letters “S,” “E,” and “N” stand for stainless, environmentally friendly, and non-flammable, respectively)—have been developed recently. In this study, the microstructure, tensile properties, and high-cycle fatigue properties of an extruded Mg–9.0Al–0.8Zn–0.1Mn–0.3Ca–0.2Y (SEN9) alloy are investigated and compared with those of a commercial Mg–9.0Al–0.8Zn–0.1Mn (AZ91) alloy extruded under the same conditions. Both the extruded SEN9 alloy and the extruded AZ91 alloy have a fully recrystallized structure comprising equiaxed grains, but the former has a smaller average grain size owing to the promoted dynamic recrystallization during extrusion. The extruded AZ91 alloy contains coarse Mg17Al12 discontinuous precipitate (DP) bands parallel to the extrusion direction, which are formed during its cool down after extrusion. In contrast, the extruded SEN9 alloy contains relatively fine undissolved Al2Ca, Al8Mn4Y, and Al2Y second-phase particles, which are formed during the solidification stage of the casting process. The tensile strength of the extruded SEN9 alloy, which has finer grains and more abundant particles, is slightly higher than that of the extruded AZ91 alloy. However, the difference in their strengths is relatively small because the stronger solid-solution hardening and precipitation hardening effects in the extruded AZ91 alloy offset the stronger grain-boundary hardening and dispersion hardening effects in the extruded SEN9 alloy to some extent. The tensile elongation of the extruded AZ91 alloy is significantly lower than that of the extruded SEN9 alloy because the large cracks formed in the DP bands in the former cause its premature fracture. Although the extruded SEN9 alloy has higher tensile properties than the extruded AZ91 alloy, the high-cycle fatigue life and fatigue strength of the former are shorter and lower, respectively, than those of the latter. The DP bands in the extruded AZ91 alloy do not act as fatigue crack initiation sites, and therefore, fatigue cracks initiate on the specimen surface at all stress amplitude levels. In contrast, in most of the fatigue-fractured specimens of the extruded SEN9 alloy, fatigue cracks initiate on the undissolved Al2Ca and Al2Y particles present on the surface or subsurface of the specimens because of the high local stress concentration on the particles during cyclic loading. This particle-initiated fatigue fracture eventually decreases the high-cycle fatigue resistance of the extruded SEN9 alloy.