The effects of Sn addition on the microstructure of as-cast and as-extruded Mg-9Li alloys were investigated. The results show that α-Mg, β-Li, Li2MgSn, and Mg2Sn are primary phases in the microstructures of the as-cast and as-extruded Mg-9Li-xSn (x=0, 5; in mass fraction, %) alloys. Li2MgSn phase evolves from continuously net-like structure in the as-cast state to fine granular in the as-extruded state. After the extrusion, Mg-9Li-5Sn alloy has finer microstructures. Li2MgSn or Mg2Sn compound can act as the heterogeneous nucleation sites for dynamic recrystallization during the extrusion due to the crystallography matching relationship Extrusion deformation leads to dynamic recrystallization, which results in the grain refinement and uniform distribution. The as-extruded Mg-9Li-5Sn alloy possesses the lowest grain size of 45.9 μm.