The microstrctural evolution pre and post heat treatment is critical to achieve a successful product for metal forming process. This paper aims to investigate the microstructual effect of the magnesium alloy tubes undergone various heat treatment conditions to achieve material homogenization. The heat treatment conditions under various periods of time (1, 2, 6, 12 and 30 hours) at 400 °C were employed to investigate the microstructural effect on hydroforming magnesium tubes. The greatly reduced impurity embedded in grain boundaries and more uniform grain sizes do indicate the improvement of material strength and ductility. To validate the conclusion, corresponding tensile tests at the different temperatures (20 °C and 200 °C) were carried out. The increased engineering strain in two directions (hoop and longitudinal) implies that the microstructural evolution is unquestionably useful to enhance the ductility of the magnesium tubes. Subsequently, the tubes after optimal heat treatment condition at 400 °C for 6 hours were used to further carry out the thermal hydroforming process for validation. The defect-free hydroformed tubes were produced under the same working condition, which is unable to be achieved for tubes without the heat-treatment process.