Alloy Mg-10Gd-3Y-0,4Zr in as-cast, as-extruded, cast-T6 (peak aged) and extruded-T5 (peak aged) state was tensile creep tested at 200, 250 and 300 °C and stress 50, 80 and 120 MPa. Comparison of minimal creep rate shows that alloy Mg-10Gd-3Y-0,4Zr in cast-T6 conditions is characterized by an excellent creep resistance, which is higher than that of commercially available Mg-alloys. Creep resistance of as-cast, as-extruded and extruded-T5 alloy Mg-10Gd-3Y-0,4Zr is lower. Cavity nucleation is heavily affected by the amount of secondary phases on the grain boundaries and also by the initial grain size of the microstructure. After extrusion and in the extruded-T5 conditions creep cavitation was not observed, whereas in the as-cast and cast-T6 conditions creep cavitation occurred on the high fraction of grain boundaries.