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In this study, Mg-Zn-Y-Nd alloy micro-tubes with an outer diameter of φ2.46 mm and a wall thickness of 0.14 mm were successfully prepared using an improved technique including hot extrusion with water cooling, multi-pass cold drawing and final annealing treatment. The outer diameter error, inner diameter error and wall thickness error of the cold drawn micro-tubes were 0.58%, 0.36% and 3.43%, respectively. After final annealing at 350 °C for 60 min, the micro-tubes showed refined microstructure with an average grain size of 8.6 μm, a weak texture of the rare earth texture or recrystallization texture, and homogeneously distributed fine second phase particles. The annealed micro-tubes exhibited significantly improved mechanical properties with a yield strength of 240.1 ± 6.0 MPa, an ultimate tensile strength of 319.9 ± 6.0 MPa and a breaking elongation of 22.2 ± 1.0%. Meanwhile, the typical characteristic of ductile morphology could be observed for the fractured specimens. In addition, the annealed micro-tubes also had better corrosion resistance and showed a uniform corrosion morphology. • The thin-walled Mg alloy micro-tubes were prepared by an improved method. • The rare earth texture and recrystallization texture were formed in the annealed microtube. • The annealed micro-tubes showed weakened texture. • High strength and large elongation of the annealed micro-tubes were achieved. [ABSTRACT FROM AUTHOR]