The microstructure and mechanical properties of AZ31 Mg alloy processed by high ratio extrusion (HRE) were investigated. General extrusion with extrusion ratio of 7 and high ratio extrusion with extrusion ratio 100 were contrastively conducted at 250, 300 and 350 ℃. The results show that HRE process may be applied successfully to AZ31 Mg alloy at temperatures of 250, 300 and 350 ℃ and this leads to obvious grain refinement during HRE process. The strength of HRE process is improved obviously compared with that of general extrusion. The grain refining mechanism of HRE process was also discussed. The current results imply that the simple high ratio extrusion method might be a feasible and effective processing means for refining the microstructure and improving the mechanical properties of AZ31 Mg alloy.