The aging characteristics of gas atomized Mg-6 wt.% Al-1 wt.% Zn alloy were investigated and compared to those of cast Mg-6 wt.% Al alloy. The gas atomized Mg-6 wt.% Al-1wt.% Zn alloy powders had spherical morphology between 1 and 100 $mu m$ in diameter. After compaction under the pressure of 700 MPa at $320^{circ}C$ for 10 min, the Mg-6 wt.% Al-1 wt.% Zn alloy showed a grain size of approximately 40 $mu m$ which is smaller than that of the cast Mg-6 wt.% Al alloy, and a relative compact density of approximately 93%. After ageing, the Mg-6 wt.% Al-1 wt.% Zn alloy showed much faster peak hardness than cast Mg-6 wt.% Al alloy. The Mg-6 wt.% Al-1 wt.% Zn alloy showed the new fine precipitations with ageing time, while the cast Mg-6 wt.% Al alloy was almost similar morphology.