The effects of trace Sr on the as-cast micro-structure and mechanical properties of AZ91D magnesium alloy have been investigated by means of SEM(scanning electron microscope), Hi-scope compact micro-vision system, multi-functional materials experimental machine, Brinell hardness tester and impact testing machine. The results indicate that trace Sr addition can change the β phase in AZ91D magnesium alloy from net-like structure into spheroid or short rod ones. Compared with that of AZ91D magnesium alloy without Sr addition, the tensile strength and elongation of the alloy with 0.05% Sr addition can reach 185.4 MPa and 6.7%, respectively, increased by 11.3% and by 139.3%, respectively, which is related to the change of Sr on morphology of β phase. In addition, the impact toughness of the magnesium alloy is 40.2 J/cm2 and 29 J/cm2 in graphite mold and in sand mold, respectively, improved by 26.4% and by 12.5%, respectively, compared with that of the alloy without Sr. Meanwhile, the hardness of alloy is increased with increasing in Sr addition.