AJ61-xNd magnesium alloys are prepared in vacuum furnace under the protection of argon atmosphere and the effect of Nd content on microstructure of the test alloy is studied. The corrosion behavior of AJ61-xNd alloys in 3.5% NaCl aqueous solution is investigated by static weight-loss test and polarization curve measurement. The results indicate that with the addition of Nd, binary Al2Nd phase and Al3Nd phase are formed in the alloy, meanwhile, grain sizes are greatly reduced with the addition of Nd and the refinement effect on the test alloy is the best when the mass fraction of Nd is 0.5%. It is found that due to the addition of Nd, the corrosion rate and corrosion current of AJ61 magnesium alloy can be significantly reduced, the equilibrium potential and corrosion potential of the test alloy can be enhanced substantially. The corrosion resistance of AJ61 magnesium alloys is improved a lot with the Nd addition. The AJ61-0.5Nd magnesium alloy has the best corrosion resistance behavior.