Microstructures and grain growth behaviors at elevated temperatures have been investigated for extruded Mg-2%Zn and Mg-2%Zn-0.3%Zr alloys, in order to clarify the role of Zr in grain stability of Mg-Zn alloy. The grain size of Zr-free alloy increased continuously with an increase in annealing temperature, when isochronally annealed for 60 min from 573 to 723K, while the grains of the Zr-containing alloy were relatively stable up to 723 K. The activation energies for grain growth ($E_g$) between 573 and 723 K were calculated as 77.8 and 118.6 kJ/mole for the Mg-2%Zn and Mg-2%Zn-0.3%Zr alloys, respectively, which indicates that grains in the Zr-added alloy possess higher thermal stabilities at elevated temperatures. TEM observations on the annealed Mg-2%Zn and Mg-2%Zn-0.3%Zr alloys revealed that enhanced grain stability resulting from Zr addition into Mg-Zn alloy would be ascribed to the restriction of grain growth by stable Zn-Zr nano-precipitates distributed in the microstructure.