Surface poisoning and corrosion are shown to be the most significant degradation mechanisms acting on the hydrogen membrane materials at elevated temperatures in synthesis gas derived from coal. Among other metallic dense membrane materials, Cu-Pd alloys have demonstrated promise for being resistant against these degradation mechanisms. Also, it has been shown that Cu-Pd compositions containing ordered bcc (B2) crystal structure exhibit high hydrogen permeability. Magnesium was one of the elements that were found to extend the stability of the B2 phase field in Cu-Pd to higher temperatures. High-temperature XRD, SEM and TEM were utilized to characterize the structure of a Cu-43Pd-5.6Mg (in atomic percent) alloy. Two ordered phases with the same crystal structure (B2), but with different chemical compositions, were identified in the alloy. Transition temperature from these ordered bcc phases to the disordered fcc phase was significantly increased by addition of Mg compared to the binary Cu-48Pd alloy.