In this paper, 1.5 wt%Sn was added to the AZ31 magnesium alloy aiming at improving the mechanical properties by using a low cost alloying element. Both alloys were prepared in the cast/heat treated (HT), rolled at 350 8C, rolled/heat treated at 400 8C and extruded at 350 8C. The results indicate that with addition of tin an improvement was obtained in both tensile strength and ductility of the AZ31 alloy in the cast/heat treated and in the extruded conditions. The yield and ultimate tensile strengths reached 98 MPa and 224 MPa respectively with 14 % elongation in the cast/heat treated condition while in the extruded condition these values were 212 MPa and 286 MPa with 20 % elongation. The tensile strength was even higher after rolling reaching 315 MPa for AZ31 with tin addition; however, as the material temperature during the last passes has decreased to relatively low values, the % elongation decreased to 1 %. After heat treatment at 400 8C for 2 hours the % elongation was restored and reached 12 %; this was accompanied by a decrease in tensile strength which reached 276 MPa. The results are discussed in relation to the microstructure evolution including grain size, phase identification, and volume fraction of phases.