The mechanical properties of ZM5 magnesium laser clad coatings are weaken by the lamellar β -Mg17Al12 phases on grain boundaries. The Mg-Al-Gd coatings on cast magnesium alloy are fabricated by laser cladding. The effects of Gd addition on the microstructures and tensile behaviors of coatings have been investigated. The results indicate that the Gd addition led to the formation of a cubic Al2Gd phase as well as suppresses the precipitation of the eutectic Mg17Al12 phase. The laser clad coating with 5.0% mass fraction Gd presents higher ultimate tensile strength and yield strength than that without Gd element at both room temperature and high temperature. The enhancement of heat resistant capacities is chiefly attributed to the existence of thermally stable Al2Gd particles, which prevents tiny liquation of eutectic phases along the grain boundaries and makes great contributions on maintaining high yield ratio during high-temperature deformation.