The modification mechanism of Nd on Al-25Si alloy was studied. The result showed that pure Nd (0.3%) could significantly refine primary silicon in hypereutectic Al-25Si alloy. And the morphology of primary silicon was transformed from star-shaped to block and the size of primary silicon changed from 150~200 μm to 40~80 μm after modification. The morphology of silicon and elements presence was detected by means of SEM-EDS, XRD was carried out to detect the phase constitution before and after modification. It was found that no new phase formed and the lattice of silicon and aluminum increased after modification and most of Nd may exist as solids solute element of silicon and absorb on the surface of silicon. Mechanical property test results showed that after modification with 0.3% Nd, Tensile strength increased about 33% from 138 to 184 MPa, yield strength increased about 15% from 126 to 145 MPa, and elongation change was not obvious. The improvement of mechanical property should attribute to fine grain strength and purification of base metal after modification.