Magnesium alloys have been widely used for many structural components of automobiles and aircraft because of high specific strength and good castability in spite of hexgonal closed-packed crystal structure of pure magnesium. In this paper, FE analysis was executed about the formability of AZ3l magnesium alloy on press forging process. For this, the variation of sheet temperature, distribution of punch force and the effect of heat transfer and friction between punch and sheet on the forming characteristics during press forging of AZ31 has been analyzed by finite element analysis. In order to obtain temperature dependence of material characteristics, uniaxial tension tests at elevated temperature were done under temperature of $100^{circ}C~ 500^{circ}C$