An MgZnY alloy with a dispersion of quasicrystal phase particles showed low‐temperature superplastic behavior, and the dominant deformation process was grain boundary sliding. Observations of the deformed microstructure showed that the quasicrystal phase particles were an obstacle to dislocation movements; the kinetics of the superplastic behavior were lower than those of a conventional magnesium alloy. This alloy also demonstrated a high possibility for secondary forming – i.e., superplastic forging.