Graphite powder was used to prevent a molten AZ91D magnesium alloy from oxidation and burning in order to develop a new pollution-free protection method with low cost. The protection method is expected to have good protective effect without decreasing the mechanical properties of the alloy. The protective ability of graphite powder on the alloy was investigated. Experimental results showed that graphite powder could protect AZ91D melt. The protective ability increased with graphite powder amount and decreased with holding time. The microstructure, chemical composition and phase composition of the surface films formed on the molten AZ91D alloy were analyzed using scanning electron microscopy, energy dispersive spectrometer and X-ray diffraction, respectively. The protection mechanism was discussed. The surface films produced by the reactions between graphite powder, AZ91D alloy melt and the ambient atmosphere had two layers. The continuous and compact outer layer, mainly consisting of MgO and C, may be the fundamental reason for the fact that graphite powder could protect AZ91D alloy melt.