Atomic-scale structure of Al 2 Y phase and its interface with magnesium matrix in an Mg-1Al-6.2Y (wt%) alloy have been investigated using scanning transmission electron microscopy (STEM) and density-functional theory (DFT). Apart from micro-sized Al 2 Y particles in the interior of grains or along grain boundaries, nano-sized Al 2 Y lamella with a large aspect ratio precipitates within the grains. Y À enriched stacking faults are introduced at the lamellar Al 2 Y/Mg interface due to 0.07% lattice misfit between (022) Al2Y and 0 110Þ ð Mg planes. The first-principles simulation clarifies that Al 2 Y/Mg interface is energetically occupied by Al atoms other than Y atoms.