Abstract: A continuously cast eutectoid Zn-Al alloy was extruded at about 250℃ and the complex microstructures of three phases (α. ε and η'E) were observed in the extruded eutectoid Zn-Al alloy.The fcc Al-rich α phase appeared as isolated particles with clear boundaries instead of the α phase occurring with diffuse boundary within the dendrites of the as-cast structure. A new unstable phase η'E was determined to have hexagonal close packed crystal structure. The decomposed β's, phase comprised the matrix. The new phase η'E decompoeed and a four phase transformation α+ε T'+η occurred afterwards during the isothermal holding. The extruded alloy tended to be stable after these two phase transformations. The early shrinkage and the following increase in dimension were related to the decomposition of the new phase η'E and the four phase transformation.