1 wt.% different rare earth elements (Ce, Y, Gd, misch metal, Nd) are added into the alloy of Mg-6Li-1.5Al, respectively. The different effects on the microstructure and mechanical properties are evaluated. The additions of these elements produce granular and rod-like precipitated phases, which are Al2Ce, Al2Y, AlGd, Al3La, Al2Nd, respecitvely. All the rare elements have refining effects in the alloys. Misch metal and Nd have the best refining effects, while Y and Ce have the least obvious refining effects. All the elements are favorable for the improvement of strength and elongation. Mg-6Li-1.5Al-1Ce possesses the highest strength, and Mg-6Li-1.5Al-1Y possesses the highest elongation. If considering the different yield of elements, Mg-6Li-1.5Al-1Y possesses both the highest strength increase per rare earth yield and elongation increase per rare earth yield.