In this work, we reported an unusual phenomenon of strain neutral layer (SNL) spreading in an as-rolled AZ31B magnesium alloy sheet during V-bending. The SNL on the middle symmetrical surface perpendicular to the transverse direction (TD) of the sheet extended to the compression region and was accompanied by a mound-like feature. However, the SNL on the side surface perpendicular to the TD was distributed with a parallel band feature. The underlying mechanism was revealed by the finite element (FE) analysis. The results indicate that the three-dimensional compressive stresses in the compression region of the bending samples were responsible for the above phenomenon. Moreover, the area of the SNL in the middle position gradually decreased as the bending test progressed. The findings in this study provide some new insights into the bending deformation behavior of magnesium alloy.