Magnesium–gadolinium (Mg–Gd)-based alloys have excellent high-temperature properties and the addition of two heterogeneous rare earth (RE) elements may promote the formation of secondary phase for better-strengthened properties. Herein, novel Mg-7Gd-2Nd-0.5Zr (wt%) alloys were prepared by synergistic reaction induced by high-speed extrusion (EX) and short-time aging treatment (AT). The microstructures, textures, and mechanical properties of the resulting alloys were then comprehensively studied by various analytical methods. The result reveals that the as-cast Mg-7Gd-2Nd-0.5Zr (wt%) alloy is composed of α-Mg matrix and Mg5(Gd,Nd) phase with bony and continuous networks at grain boundaries. The microstructure presents coarse deformed grains and fine recrystallized grains after high-speed EX, and formation of typical (0001)∥ ED extruded fiber texture and [1¯21¯1] RE texture is observed. The EX22 sample exhibits more Mg5(Gd,Nd) precipitated phases, fuller DRXed grains, and shorter peak aging times than the EX9 sample. After the AT at 250 °C, the proportion of deformed grains decreases due to static recrystallization, which leads to a reduction in the average grain size and weakening of the texture intensity. Therefore, combined effect of all strengthening mechanisms aids in achieving balance of high-strength and high-elongation for Mg-7Gd-2Nd-0.5Zr (wt%) alloy. The values of yield strength (YS), ultimate tensile strength (UTS), and elongation (EL) of EX22-A sample at room temperature are found to be 292.5 MPa, 350.6 MPa, and 24.3%, respectively. Overall, this study provides relevant experimental basis and theoretical guidance for the development of high-strength Mg-RE alloys, which are useful for future consideration.