Twin-Roll-Casting process is a rapid solidification process combining with hot rolling deformation. The liquid metal will be squeezed out but not sucked in from the mush zone caused by rolling deformation. This is different from conventional continuous casting process and will greatly affect the microstructure morphology and surface cracks of as-cast strip. In this paper, a 2D FEM model was employed to simulate the thermal mechanical behavior during twin-roll casting process of Mg alloy AZ31. The FEM results were compared with experimental results and show the effect of rolling deformation on the microstructure morphology and surface cracks of as-cast sheet.