The tension-compression asymmetry presents notable challenges for the application of magnesium alloys in many fields. In this study, the solid-solution treated Mg-8.5Gd-4.5Y-0.8Zn-0.4Zr alloy's tension-compression asymmetry was examined using optical microscope (OM), x-ray diffraction (XRD), viscoplastic self-consistent (VPSC) modeling, and electron backscatter diffraction (EBSD). The VPSC hardening parameters were significantly adjusted based on the Schmid factor of deformation modes in rare earth magnesium (Mg-RE) alloy, which came from the EBSD data. Excellent agreement was found between the modified VPSC model's calculation results, especially the stress-strain curves and pole figures. The alloy exhibited good strength with a negligible tension-compression asymmetry and an impressive 0.98 ratio of compressive yield strength to tensile yield strength (CYS/TYS). The main cause could be attributed to the unusual texture of (11-20) <0001> in alloy, which eliminated the imbalance in tension and compression deformation by having a negative effect on the activation of {10-12} twinning in tensile and a positive effect in compressive deformation. The activation level of {10-12} twinning was 0.37 and 0.40 calculated by VPSC model, in the plastic deformation of tension and compression, respectively; in the tensile and compression samples, the EBSD data indicated that approximately 31.9% and 31.1% (area proportion) of the grains were deformed with twins, respectively. Both tension and compression deformation showed the {10-12} twinning in the early stage of deformation, which transformed to {11-22} twinning in the later stage. The considerable activation of pyramidal <c+a> during the later stages of deformation endowed the alloy with good ductility.