Channel die compression and initial textures are used to activate different deformation mechanisms in a fine-grained magnesium alloy AZ31. The σ-ε curves, microstructures and, particularly, textures are analyzed to reveal different deformation mechanisms and to compare with those of coarse grained samples. Dominant double-prismatic slip,{1012} twinning and basal slip are detected in three types of samples, respectively, which is similar to those of coarse grained samples. The detrimental effect of shear band formation or {1011} twinning is limited in fine grained microstructure. In addition to the higher flow stress at low temperature an early decrease in flow stress at higher temperature is also found in fine-grained samples in comparison with their coarse-grained counterparts. This softening is ascribed to the early dynamic recrystallization or grain boundary glide.