Annealing behaviors of hot-deformed magnesium alloy AZ31 were studied at temperatures from 300 to 673 K by optical and SEM/EBSD metallographic observation. Temperature dependence of the average grain size(D) is categorized into three temperature regions, i.e. an incubation period for grain growth, rapid grain coarsening, and normal grain growth. The number of fine grains per unit area, however, is reduced remarkably even in incubation period. This leads to grain coarsening taking place continuously in the whole temperature regions. In contrast, the deformation texture scarcely changes even after full annealing at high temperatures. It is concluded that the annealing processes operating in hot-deformed magnesium alloy with continuous dynamic recrystallized grain structures can be mainly controlled by grain coarsening accompanied with no texture change, that is, continuous static recrystallization.