The effects of hydrostatic pressure on grain refinement and deformation behaviors of Mg–13Gd–4Y–2Zn–0.5Zr alloy were investigated. With the increase of hydrostatic pressure, the equivalent stress and forming load increase, and stress triaxiality also increases. The hydrostatic pressure has little effect on dynamic recrystallization (DRX) fraction and grain size, and the DRX fraction difference is not greater than 10%. This is because DRX critical strain and grain nucleation are almost unaffected by hydrostatic pressure. The slight increase in DRX fraction under higher hydrostatic pressure is attributed to the enhanced <a> dislocation activity near the lamellar long-period stacking ordered (LPSO) phase and significant local temperature elevation in the deformation zone. The high hydrostatic pressure is mainly borne by the LPSO phase. The bending deformation energy of the lamellar LPSO phase increases with the increase of hydrostatic pressure. The area fraction of samples is decreased from 18.5% of one direction compression & simple shear (1-CS) sample to 13.6% of three directions compression & simple shear (3-CS) sample. The solute diffusion and deconstruction of the bulk LPSO phase occur at higher hydrostatic pressure. The hydrostatic pressure has little effect on the basal texture strength of α-Mg phase under strong shear stress. The activation of <c+a> dislocation, as the primary source of non-basal slip, shows the same distribution characteristics.