Dilute Mg–0.21Zn–0.30Ca–0.14Mn (wt.%) alloy was newly developed as low-cost wrought Mg alloy. Excellent balance of strength and ductility was achieved via extrusion process by grain refinement and texture modification. The dilute alloy extruded at 300 °C exhibited a tensile yield strength of 307 MPa and an elongation of 20.6% due to a bimodal microstructure consisting of fine dynamically recrystallized (DRXed) grains of ∼2.3 μm and strongly textured coarse unDRXed grains. After extrusion at 350 °C, almost fully DRXed microstructure (DRX fraction of ∼0.96) and significantly weakened basal texture (maximum intensity of 3.2) with rare-earth texture component were achieved, consequently resulting in a high compression/tension yield ratio of ∼0.8 with tensile elongation of 30.0% and tensile yield strength of 164 MPa. Besides, fine spherical Mg2Ca and α-Mn phases dynamically precipitated during extrusion, acting as effective pinning obstacles against the DRXed grain growth.