Different with common grain refinement dominated by dislocation activities, grain subdivision induced by sequential activation of multiple twinning was observed in a Mg-Gd-Y-Zr magnesium alloy via high-pressure torsion. Deformation bands were evolved from large primary twin bands, which contained refined grains through localized multiple twinning. Nanometer-scaled amorphous bands were also observed within deformation bands in Mg alloys for the first time. These observations indicate that localized deformation via multiple twinning and the consequent formation of deformation bands are potential routes to grain refinement in rare earth-magnesium alloys.