Extrusion treatment is a common method to refine the grain size and improve the mechanical properties of metal material. The influence of hot extrusion on microstructure and mechanical properties of AZ31 magnesium alloy was investigated. The results show that the mechanical properties of AZ31 alloy are obviously improved by extrusion treatment. The ultimate tensile strength (UTS) of AZ31 alloy at room temperature is measured to be 222 MPa, and is enhanced to 265.8 MPa after extrusion at 420℃. The yield tensile strength (YTS) of AZ31 alloy at room temperature is measured to be 84 MPa, and is enhanced to 201 MPa after extrusion at 420℃. The effective improvements on mechanical properties result from the formation of the finer grains during extrusion and the finer particles precipitated by age treatment. The features of the microstructure evolution during hot extruded of AZ31 alloy are dislocation slipping on the matrix and occurrence of the dynamic recrystallization.