To facilitate the industrial application of wrought Mg alloys, this study explores the impact of the rare earth (RE) element Sm on the microstructure and mechanical properties of hot-rolled Mg-1Al-0.3Ca alloy. The results indicate that the average grain size and basal texture intensity of the hot-rolled Mg-1Al-0.7Sm-0.3Ca alloy are significantly reduced compared to the hot-rolled Mg-1Al-0.3Ca alloy. This reduction can be attributed to the pinning effect of grain boundaries and grain refinement facilitated by the presence of the fine Al2Sm phase. Additionally, the addition of Sm leads to an increase in yield strength and ultimate tensile strength, along with a decrease in elongation. This can be attributed to the combined effects of the strengthening mechanism provided by a significant number of Al2Sm particles and the stress concentration occurring at the sharp corners of these particles. Significantly, this study proposes the substitution of expensive RE elements with more cost-effective Sm in the design of Mg alloys for low-alloy systems. The excellent mechanical properties of the Mg-1Al-0.7Sm-0.3Ca alloy provide a reference for the future development of high-performance Mg alloys.