Friction stir welding (FSW) is a solid state joining method. The process produces high-quality, defect-free joints with better mechanical properties than fusion welding processes. Recently, friction stir processing (FSP), an adaptation of friction stir welding, has been demonstrated to be an effective means of refining grain size of cast or wrought aluminum via dynamic recrystallization. FSP is an effective grain size refinement technique when processed under the proper conditions. In the present result, grain size of AZ31 Mg can be refined from 75m to 0.6m. The relationship between the resulting grain size and the applied working strain rate and temperature for the friction stir processing in the AZ31 Mg alloy is systemically examined. The Zener-Hollomen parameter is utilized in rationalizing the relationship, and it was found that the relationship of 1n d=8.7-0.27 1n Z is followed. The temperature rise during FSP is traced, and the maximum temperature can reach 250-450℃, depending on the FSP pin rotation speed. Based on systematic hardness measurements of the base and FSP specimens, the Hall-Petch relationship is well followed, i.e., Hv=40+72 d-1/2. The grain orientation distribution is also studied using the X-ray diffraction, and the results show that, in the FSP dynamically recrystallized zone, the (0002) basal plane tends to lie on the transverse plane at lower pin rotation speeds, and approaches to nearly random orientation at higher rotation speed.