In phase II, the fundamental microstructure/processing/property relationships for ODS magnesium alloys will be investigated. Larger samples will be produced while key process parameters are systematically varied. These samples will be investigated microstructurally by optical and SEM techniques. Standard elevated temperature tensile and creep testing will be performed in condition, the most promising samples will be further processed by hot working techniques and the same type of microstructural, mechanical, and physical property evaluations. Successful completion of the Phase II research will provide the foundation for future commercialization of ODS magnesium with elevated temperature capability and improved modules produced by pressure infiltration. Pressure infiltration is a low cost process and is expected to produce cost-effective ODS magnesium alloys. Such alloys could lead to the development of more fuel efficient and environmentally cleaner automobiles.