The stress corrosion cracking (SCC) properties of the bi-directional forged (BDF) Mg-4Zn-0.6Zr-xSr (ZK40-xSr, x = 0, 0.4, 0.8, 1.2, 1.6 wt %) alloys were studied by the slow strain rate tensile (SSRT) testing in modified simulated body fluid (m-SBF). The average grain size of the BDF alloys were approximately two orders of magnitude smaller than those of the as-cast alloys. However, grain refinement increased the hydrogen embrittlement effect, leading to a higher SCC susceptibility in the BDF ZK40-0/0.4Sr alloys. Apart from the grain refinements effect, the forging process also changed the distribution of secondphase from the net-like shape along the grain boundary to a uniformly isolated island shape in the BDF alloys. The SCC susceptibility of the BDF ZK40-1.2/1.6Sr alloys were lower than those of the as-cast alloys. The change of distribution of the second phase suppressed the adverse effect of Sr on the SCC susceptibility in high Sr-containing magnesium alloys. The results indicated the stress corrosion behavior of magnesium alloys was related to the average grain size of matrix and the distribution and shape of the second phase.