The newly developed Mg–Zn-RE (rare earth) alloy sheet shows significant prospects for 3C applications due to its superior room-temperature malleability compared to the commercial AZ31 alloy. However, the casting ingots of these alloys often exhibit coarse grains due to low alloying element content and the absence of the grain-refining element Zr, making them susceptible to significant cracking while hot-rolling. This study applies a multi-pass cold rolling technique with minimal reduction to a cast Mg–Zn-Gd-system alloy characterized by coarse grains, followed by a static annealing process to enhance its rolling capability. The impact of cold rolling and annealing temperatures on microstructure, plastic deformation mechanism, and static recrystallization (SRX) behavior were studied. It was found that multi-pass cold rolling with minimal decrease promoted the generation of more twins and slip lines, resulting in more uniform deformation and a substantial accumulated rolling strain of 10 %. Consequently, the significant accumulated strain, coupled with stress concentration at positions such as grain boundaries, twin boundaries, and dislocation tangles, acted as nucleation sites for complete static recrystallization at a specific annealing temperature of 375 °C. As a result, the coarse cast grains were successfully refined from 400 μm to 37 μm. Fortunately, this improvement has significantly enhanced the hot-rolling qualities, removing fractures throughout the process. This advancement not only enables industrial-scale rolling but also enhances production efficiency.