This study adopted mechanical milling to prepare Mg-based REMg11Ni (RE = Sm, Y) hydrogen storage alloys. The alloy structures were examined by X-ray diffraction and transmission electron microscopy. The isothermal hydrogenation thermodynamics and kinetics were determined by an automatic Sievert apparatus. The non-isothermal dehydrogenation performance of the alloys was tested by differential scanning calorimetry and thermogravimetry at different heating rates. The results showed a nanocrystalline and amorphous tendency for the alloys. The YMg11Ni alloy exhibited a larger hydrogen absorption capacity, faster hydriding rate, and lower temperature of onset hydrogen desorption than the SmMg11Ni alloy. The hydrogen desorption temperatures of the REMg11Ni (RE = Sm, Y) alloys were 557.6 K and 549.8 K (284.6 °C and 276.8 °C), respectively. The hydrogen desorption property of the RE = Y alloy was found superior to the RE = Sm alloy based on the time required to absorb 3 wt pct H2, i.e., the time needed by the RE = Y alloy was reduced to 1106, 456, 363, and 180 s, respectively, corresponding to the hydrogen desorption temperatures of 593 K, 613 K, 633 K, and 653 K (320 °C, 340 °C, 360 °C, and 380 °C), compared to 1488, 574, 390, and 192 s for the RE = Sm alloy under identical conditions. The dehydrogenation activation energies were 100.31 and 98.01 kJ/mol for the REMg11Ni (RE = Sm, Y) alloys, respectively, which agreed with those of the RE = Y alloy showing a superior hydrogen desorption property.