The effects of Bi and Ag addition on the microstructure and age hardening response of Mg-8Sn-2Al alloy were investigated in this study. The Mg2Sn phase distributed along grain boundaries was observed in as-cast Mg-8Sn-2Al alloys and disappeared after solution treatment due to the Sn dissolution into ɑ-Mg matrix. However, a majority of Mg2Sn phase disappeared and few Mg2Sn particles still existed in the solid solutioned Mg-8Sn-2Al alloys containing Bi element. Mg2Sn precipitates formed in all peak-aged alloys. And Al, Bi and Ag elements are enriched in the areas of lath-shaped and spherical Mg2Sn precipitates in peak-aged Mg-8Sn-2Al-1.5Bi-1Ag alloy. Bi and Ag elements can act as heterogeneous nucleation sites and restrict the growth of precipitates to improve the age hardening response of Mg-8Sn-2Al alloy. Meanwhile, the undissolved Mg3Bi2 phase or early precipitated Mg3Bi2 phase during ageing treatment probably change the morphology and elements distribution of Mg2Sn precipitates. In addition, Ag and Bi atoms play a role on grain refinement and solution strengthening in Mg-8Sn-2Al alloy. Therefore, the micro-hardness value of peak-aged Mg-8Sn-2Al-1.5Bi-1Ag alloy increased to 69.9 HV from 47.4 HV of solid solutioned Mg-8Sn-2Al alloy. The precipitation behaviour, refined second phase, grain refinement and solute atoms synergistically made contributions to the strength improvement. The roles of Bi and Ag elements on improving age hardening response and precipitates characteristics are discussed in this study, which provides an important reference for exploring aged Mg-Sn alloys.