The effect of Rare Earth Ce on the grain size and as cast mechanical properties of magnesium alloy AZ31 was studied in the paper, using conventional method. The results show that when the adding amount of Ce is less than 1%,the grain size decreases as the adding amount of Ce increases; when the adding amount of Ce is more than 1%, the grain size increases as the adding amount of Ce increases. Compared to the magnesium alloy AZ31 without adding Ce, the mechanical properties of the magnesium alloy AZ31 adding Ce are improved abviously. The results of SEM show that the material crashes along the interface of the grains while drawing , cuts through the grains while compressing.