AZ31 magnesium alloy is mainly used in aerospace applications due to its lightweight and good mechanical properties. The installation of AZ31 alloy in an aircraft usually requires machining operations such as drilling and milling for assembly purposes. The current study aims to investigate the effects of different extrusion ratios (1.77, 2.68, 3.55) on the drilling machinability of AZ31 alloys. The machinability was evaluated with thrust force, borehole surface quality, and chip characteristics. It was found that the thrust force and hole quality depend on the extrusion ratio and cutting parameters. The highest thrust force and surface roughness Ra occurred when drilling AZ31 alloy produced using the highest extrusion ratio of 3.55 in agreement with the improvement in the mechanical properties. The chip length decreased with the increase of the extrusion ratio depending on a decrease in the ductility, while SEM images showed that the AZ31 sample produced using intermediate extrusion ratio had the best hole edge quality and least burr formation.