Abstract—The objective of this paper is to study the micro structural features of ZA27alloy containing nickel in the range from 1 to 3 wt. %. The microstructure of the alloy was examined using both optical and SEM. High percentage of nickel helps in imparting strength to the alloy and also to overcome dimensional instability as it forms various intermetallic compounds containing hard particles. Small percentage of magnesium in the alloy helps in reducing intergranular corrosion. The microstructure consists of small, flaky and rod like irregularly shaped intermetallic compound in the interdendritic and eutectic regions. Metallographic studies showed that addition of nickel resulted in microstructural modifications of the alloy involving the formation of complex intermetallic compounds α.