Nowadays, there is a great demand for increasing the strength and corrosion resistance of magnesium alloys for their wider use in machine engineering, oil industry, and medicine. This paper is devoted to a study on the effects of the combined process of reduction and equal channel angular pressing, as well as the subsequent ultrasonic irradiation on the structure, strength, and corrosion properties of the Mg-Al-Zn alloy. Deformation processing results in an increase of the strength up to 280 ± 10 MPa. A fine-grained structure is formed with a grain size of 10–20 µm and small recrystallized grains 1–2 µm in size. The corrosion resistance in the HCl medium falls down significantly. Action of ultrasound on the deformed specimen leads to an increased fraction of high-angle boundaries, in particular, the fractions of special, fully overlapping Σ13a boundaries and twin boundaries of Σ15b and Σ17a systems. Due to the ultrasonic treatment, the strength of the Mg-Al-Zn alloy increases up to 310 ± 5 MPa, while the corrosion resistance in HCl almost doubles.