The effects of different initial condition (as-cast, homogenized) on grain refinement strengthening of AZ31B magnesium alloy were investigated by optical microscopy and tensile testing. The results show that the inhomogeneous second-phase γ-Mgl7Al12 along the grain boundary in as-cast was still distributed unevenly after extrusion. Compared with as-cast, tensile strength of homogenization was increased greatly after extrusion. At 250°C and extrusion ratio of 50, tensile strength reached to 391Mpa and elongation of 15.2%.The grain size after extrusion is bigger than that of as-cast after extrusion, so the Tensile strength is lower than that of as-cast. Besides, non-equilibrium phase γ-Mgl7Al12 has been dissolution after homogenized and grain distributed uniformly. Therefore, plasticity was improved greatly at the same condition as upon.