Magnesium alloys due the low density and good mechanical properties are mainly used in the automotive and aerospace industry. In recent years, magnesium alloys are extensively developed for use in high temperatures (above 120°C). Among these alloys, magnesium alloys containing tin and silicon have large possibilities of application due to the formation of thermally stable intermetallic Mg2Sn and Mg2Si. In this paper the influence of aluminum and heat treatment on the on the microstructure and hardness of Mg-7Sn-5Si alloy is reported. It was found that the microstructure of Mg-7Sn-5Si alloy consist of α-Mg solid solution, Mg2Sn and Mg2Si compounds. Addition of 2 wt% of Al to Mg-7Sn-5Si alloy causes the formation of Al2Sn phase. Moreover, Al dissolves in the α-Mg solid solution. The solution heat-treatment of tested alloys at 500°C for 24 h causes the dissolve the Mg2Sn phase in the α-Mg matrix and spheroidization of Mg2Si compound. The Mg2Si primary crystals are stable at solution temperature. After ageing treatment the precipitation process of equilibrium Mg2Sn phase was found in both alloys. The addition of aluminum has a positive effect on the hardness of Mg-7Sn-5Si alloy. In case of Mg-5Si-7Sn-2Al alloy the highest hardness was obtained for sample aged for 148 h at 250°C (88 HV2), while in case of Al-free alloy the highest hardness is 70 HV for material aged for 148 h at 250°C.