A detailed and systematic investigation on the effect post heat treatment has on the microstructure evolution and the resultant mechanical properties of the wire arc additive manufacturing processed Mg-5.9Gd-2.8Y-0.7Zr alloy is conducted in this work. The microstructure of the as-built sample is composed mainly of fine equiaxed α-Mg grain and Mg24(Gd, Y)5 phase. The solution heat treatment (400°C × 1 h) has relatively little effect on grain size, but it can effectively reduce the content of the Mg24(Gd, Y)5 phase, which leads to a significantly improved elongation with slightly decreased strength. Further ageing heat treatment at 200°C induces prismatic βʹ precipitates formation and does not influence other phases and grain size. The samples directly following the peak ageing heat treatment process demonstrate the best tensile properties with yield strength of 227 ± 9 MPa, ultimate tensile strength of 350 ± 4 MPa and elongation of 5.5 ± 0.6%.