The microstructure, texture and basic stamping properties of AZ31 magnesium sheet are studied in this paper with optical microscopy (OM), scan electron microscopy (SEM), X-ray diffraction (XRD) and MTS universal tester. The results show that the basal texture (0002) is enhanced and the grain size decreases as the thickness of sheet decreases. However the texture depresses in the 0.52mm sheet due to the complete recrystallization under deep rolling reduction. The strength and elongation decreases and the strain hardening index (n value) increases as the thickness increases. The precipitation decreases and the basal texture depresses after annealing treatment. The peak value ratio of crystal plane (0002) of 1.3mm sheet reduces from 67% to 53% when annealing treated at 300°C for 2h. In addition, the strain hardening index (n) value reduces from 0.2535 to 0.2053 and the anisotropic index (r) value increases from 1.966 to 2.108 when the sheet is treated at the same condition.