A new type of Mg-Zn-Cu-Gd-based alloy strengthened by quasicrystal and Laves phase was developed. This alloy exhibits much better creep properties compared to AE42(Mg-4 wt% Al-2 wt% rare-earth) alloy, which is the benchmark creep-resistant magnesium die-casting alloy under the compressive creep condition of 180 °C and 80 MPa. The new alloy also exhibits high room-temperature mechanical properties close to that of AZ91 alloy. The good mechanical properties are attributed to the special microstructure; the thermally stable icosahedral quasicrystals phase (i-phase) and Laves phase distributed along the grain boundary as a hard skeleton, and some fine B1′ precipitates distributed homogenously on the matrix. The dislocation morphology after the creep test was studied, and the strengthening mechanism was proposed.