A new type of magnesium alloy based on Mg–Zn–Si system has been developed for automobile application. The solidification process, microstructure, mechanical properties and creep resistance of the new alloy have been studied. Results show that the Mg–6Zn–1Si alloy has good comprehensive mechanical properties and its creep resistance is better than that of AZ91 alloy. Proper additions of Ca were found to be efficient in refining the microstructure of Mg–6Zn–1Si alloy. A morphological change in Mg 2Si particles from coarse Chinese script shape to a small polygonal type was also observed. The modification mechanism of Ca is polygonal type Mg 2Si particles nucleate from CaSi 2 particles. Such improved microstructure of the Mg–6Zn–1Si–0.25Ca alloy results in significant improvement in tensile properties and creep resistance as compared to the Mg–6Zn–1Si base alloy.