The as-extruded Mg-10Al2Y master alloy was chosen as a novel grain refiner for as-cast Mg-3Y alloy. Contrast samples of cast Mg-3Y alloy added with pure Al and Mg-Zr master alloy grain refiners were prepared under the same conditions. In this study, the influence of addition amounts of Al2Y and holding time on grain refinement efficiency as well as tensile properties was investigated. And the grain refining ability of the Al2Y particles was systematically evaluated in terms of the addition amounts, number density of the Al2Y particles and holding time. The finest grains are achieved at 2 wt% Al2Y addition amount, which corresponds to number density of the polygonal Al2Y particles of 420-460 mm-2. The Mg-10Al2Y master alloy has significant refinement performance and no refining recession occurs at the holding time within 60 min, or the settling time up to 180 min. Grain refinement and the second phase strengthening of uniformly distributed Al2Y particles contribute to the simultaneous enhancement on both strength and elongation of Mg-3Y alloy.