Microstructure evolution of hot extruded AZ31 magnesium alloy during twist channel angular pressing was investigated. The grains were refined significantly after one to four passes at 200°C. Microstructure evolution after TCAP processing was investigated using optical microscopy, transmission electron microscopy and electron backscatter diffraction. The results show effect of TCAP process on the achieving the UFG structure with average grain size below 1 μm.