The microstructure of Mg-3wt%Nd-0.2wt%Zn-0.4wt%Zr (NZ30K) alloy after solution treatment was investigated and several kinds of interesting phases containing zirconium were found in this study. NZ30K was gravity cast using permanent die casting. After high tempering solution treatment at 540 °C, cluster particles were observed inside the grains under optical microscopy. The detailed investigations were carried out on transmission electron microscopy (TEM). Four kinds of precipitates were visible inside grains with different shapes: block-like, globular, short rod-like, long rod-like. The block-like particle was identified as ZrH2 phase and the globular one was Zn2Zr3 phase. The other two were still Zr-containing phases, which could not be identified to any of existed compounds containing Zr. The formation of Zn-Zr compounds would probably be due to relative high ratio of Zr to Zn in the center of grains. ZrH2 would be the results of reaction of zirconium with H element during solution treatment, which probably came into the alloy during melting.