The evolution of texture during the annealing and hot rolling process of extruded AZ31 magnesium alloy sheets was studied. There are two kinds of texture components in the extruded AZ31 sheets. One is {0002} and the other is {1-010}. The {0002}component predominates. After annealing at 723 K for 3 h, both {0002} and {1-010} components are strengthened moderately. This indicates that grains with both two components mentioned above grow faster than those with other orientations. The {1-010} component disappears and the intensity of {0002} component decreases significantly after hot rolling with a 30% reduction at 623 K. This is mainly attributed to rotational dynamic recrystallization (RDX) during the hot rolling.