The microstructures and mechanical properties of hot rolled AZ31 Mg alloy sheets were studied to understand the microstructure evolution during AZ31 Mg alloy hot rolling process. The roller was heated to 180 ℃ with burning hydrogen, and the extruded plates were rolled at 400 ℃ from 10 to 1 mm with a reduction of 30% in thickness per pass. The result shows that there is no side-cracking of these rolled sheets every pass. The extruded microstructures are greatly refined and mechanical properties are improved. The fine grains of about 4 μm were obtained of the final 0.9 mm sheets.