In order to study the effect of plastic deformation on microstructure and mechanical properties of as-cast AZ91 magnesium alloy, experiments of hot direct extrusion were performed at different extrusion temperatures and different extrusion ratios. The microstructure and mechanical properties of extruded billets and extrudate were measured. Experimental results show that the grain size of as-cast AZ91 magnesium alloy can be dramatically refined by extrusion. Hot extrusion can obviously improve the mechanical properties of as-cast AZ91 magnesium Alloy, comparing with the pre-extruded billet, the tensile strength, yield strength and elongation of extrudate can be improved by at least 69%, 117% and 150% respectively. As the extrusion temperature increases, the tensile strength and yield strength of extrudate will increase. As the extrusion ratio increases, the tensile strength and yield strength of extrudate will increase at first and then fall. At the time of extrusion temperature of 420°C and extrusion ratio of 45, the highest tensile strength of 381Mpa and yield strength of 303MPa can be achieved for the extrudate.