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Solidification paths and phase stability have been investigated in the creep resistant Mg-Al-Ca based alloys for powertrain applications. The liquidus projection and isothermal sections of the Mg-Al-Ca ternary system were determined, including a ternary (Mg, Al)2Ca intermetallic compound. The solidification of the alloys in the α-Mg primary phase field involves L→α+(Mg, Al)2Ca eutectic reaction in a wide range of compositions and is terminated with invariant reactions that form Mg2Ca or Mg17Al12 phases. The (Mg, Al)2Ca is a high temperature phase and decomposes into Mg2Ca and Al2Ca phases between 773 and 673 K, but the transformation is kinetically quite slow at temperatures below 473 K. Based on this new knowledge, alloy modifications through quaternary elemental additions to improve the solid-solution strength and aging treatments to reinforce the α-Mg phase with precipitates have been demonstrated.