The formability of AZ31 magnesium alloy sheets has been investigated in the temperature range varying from 200 to 300°C. Forming limit diagrams have been obtained by performing Nakazima-based tests. The different straining conditions have been investigated using sheet blanks with several length to width ratios. The forming limit curves have been related to the microstructural evolution occurring during deformation. The forming limit diagrams have shown a remarkable increase in formability with temperature that could be related to the occurrence of full dynamic recrystallization at 300°C.