The invention discloses a high-ductility rare earth wrought magnesium alloy Mg-Zn-Mn-Nd-Y. The magnesium alloy is prepared from the following components in percentage: 1.3-2.5% of Zn, 0.7-1.3% of Mn, 0.3-0.7% of Nd, 0.3-0.7% of Y, and the balance of magnesium and unavoidable impurities. In the high-ductility rare earth wrought magnesium alloy disclosed by the invention, Mn, Nd and Y are added based on the low alloyed Mg-Zn system to refine grains, so as to improve the strength at room temperature, heat stability and plastic forming performance; the hot extrusion performance of the alloy is better than that of an AZ31 alloy, the alloy is good in hot working plasticity, and capable of being quickly subjected to compressional deformation; at the room temperature, the tensile strength is 260-295 MPa, the yield strength is 190-208 MPa, and the ductility is 19-30%. When used for industrial production, the high-ductility rare earth wrought magnesium alloy can be extruded and machined to obtain a plate, a bar, a pipe, a profile and a forge piece product with diversified sizes.