Magnesium alloys are the most demanded lightweight structural materials for different engineering applications such as aerospace, automobile, electronics, etc. However, the high temperature properties of Mg alloys are not comparable with its competitor, the Al alloys. Mg alloys are not recommended beyond 120°C due to their poor creep and oxidation resistance. In order to improve the high temperature properties of the magnesium alloys, rare earth containing Mg alloys were developed. Among these alloys, Mg-Sc alloys were found to be very interesting which exhibits better high temperature properties. In the present work, magnesium-scandium alloy was fabricated through liquid metallurgy route under inert cover. The alloy was characterized by optical microscopy, X-Ray Diffraction (XRD), Differential Thermal Analysis (DTA) and hardness testing. The microstructural analysis reveals the α-Mg phase and the distribution of fine Mg-Sc intermetallic. It is observed from the DTA that the melting point of the base alloy has got enhanced by the addition of Sc. There is also an appreciable improvement in the hardness by the addition of Sc.