The cyclic extrusion compression (CEC) process was introduced into the AM60B magnesium alloy. The use of the CEC process was favorable for producing finer microstructures. The results show that the microstructure can be effectively refined with increasing the number of CEC passes. Once a critical minimum grain size was achieved, subsequent passes did not have any noticeable refining effect. As expected, the fine-grained alloy has excellent mechanical properties. The micro-hardness, yield strength, ultimate tensile strength and elongation to failure of two-pass CEC formed alloy are 72.2, 183.7 MPa, 286.3 MPa and 14.0%, but those of as-cast alloy are 62.3, 64 MPa, 201 MPa and 11%, respectively. However, there is not a clear improvement of mechanical properties with further increase in number of CEC passes in AM60B alloy. The micro-hardness, yield strength, ultimate tensile strength and elongation to failure of four-pass CEC formed alloy are 73.5, 196 MPa, 297 MPa and 16%, respectively.