The thermodynamic analysis in Mg-SiO2 system was conducted for the determination of the priority reaction at experimental temperature. Then, Mg2Si reinforced Mg alloy was synthesized through reaction in Mg-SiO2 system at 730°C, whose Si mass fraction is up to approximately 10%. The thermodynamic analysis and microstructure investigation results show, that generation of reinforcing phase of Mg2Si in Mg alloy from the reaction in Mg-SiO2 system is feasible with lower free energy than that in Mg-Si at the same temperature; and under the experimental temperature and solidification condition, the microstructure of Mg-10Si alloy is composed of coarse primary Mg2Si dendrite crystal, Chinese script type eutectic Mg2Si, and α–Mg phase, the formation of α–Mg holes is resulted from the relatively high cooling rate leading to a deviation from the equilibrium diagram during solidification.