Due to the light weight and electromagnetic interference shielding capabilities in magnesium alloy material, it is widely utilized in 3C electronic components and automobile parts. However, its formability is very poor due to the phenomenon of negative strain hardening rate appearing as the deformation in large strain range, so it is usually formed as die casting or casting styles leads to much scrap, and manufacturing cost is thus increased. The objective of this study is to investigate the effect of process parameters on T-shape tube hydro-forming characteristics for magnesium alloy and it may offer the data resulting from the analysis to predict an acceptable product of tube fitting for magnesium alloy forming in industry. AZ31 magnesium alloy tube is used as the billet material for hydro-forming with hydraulic pressure as the main forming power combined with the mechanical auxiliary force from the punch to fabricate the T-shape tubing products. Finite element code DEFORM-3D is adopted to investigate the forming states of T-shape tube forming, by changing process parameters; such as punch velocity, hydraulic pressure, fillet radius of the die and tool-workpiece interface friction etc. to investigate the material flow of tube fitting, wall thickness variations, and stress and strain distributions. By qualifying the forming processes whether if it is completed or not, and synthesizing the overall analysis and judgment, we establish an admissible level of process parameter range for complete tube manufacture. The results show that suitable mechanical force can help material flow, prevent large strain deformation falling into the area of negative strain hardening rate, enhance magnesium alloy to become easy in forming and make tube fitting to be formed successfully.