In the present research, the influences of different extrusion ratios (15, 30, 45, 60, and 75) and extrusion temperature (300°C, 330°C, 360°C, 390°C, 420°C) on the mechanical properties and microstructure changes of AZ80 magnesium alloy have been investigated through tensile test and via ZEISS digital metallographic microscope observation. Research indicates that the alloy’s plasticity gradually decreases as the temperature increases, and that the alloy’s tensile strength varies with the extrusion ratio. At 330°C, the alloy’s particle grain is small and a small amount of black hard and brittle second-phase β (Mg17Al12) are precipitated uniformly along the grain boundary causing the gradual increase of the alloy’s tensile strength. When the extrusion temperature is up to 390°C, the grain size increases significantly, but the second phase precipitation along grain boundaries transforms into continuous and uniform-distribution precipitation within the grain. In this case, when the extrusion ratio is 60, the alloy’s tensile strength reaches its peak 390 Mpa. As the extrusion temperature increases, inhomogeneous precipitation of the second-phase along grain boundaries increases, causing the decrease of the alloy’s strength. At the same temperature, both the tensile strength and plasticity increases firstly and then decreases as extrusion ratio increases. With the gradual increase of the refinement grain, the dispersed precipitates increase and the alloy’s tensile strength and plasticity reach their peaks when the extrusion temperature is 390°C. As the grain grows, the second phase becomes inhomogeneous distribution, and the alloy’s strength and plasticity gradually decrease.