This comprehensive review article overviews AZ31, a highly researched magnesium alloy known for its exceptional mechanical properties, lightweight nature, and corrosion resistance. It covers the alloy's composition, microstructure, mechanical properties, applications, and prospects. AZ31's microstructure is influenced by its aluminum (Al) and zinc (Zn) composition, resulting in significant magnesium-aluminum intermetallic phase formation, critical for tailoring the alloy's properties to meet specific application needs. AZ31 exhibits impressive specific strength, excellent castability, and favorable ductility influenced by alloying elements, microstructure, and processing methods. The article discusses manufacturing processes like casting, rolling, and extrusion, which impact the alloy's microstructure and mechanical properties. It also explores the corrosion behavior of AZ31, emphasizing factors affecting corrosion resistance and strategies for improvement. Due to its lightweight properties, high strength-to-weight ratio, and electromagnetic shielding capabilities, AZ31 is widely used in various industries, including automotive, aerospace, electronics, and biomedical. Ongoing research focuses on alloy modifications, surface treatments, and additive manufacturing to enhance AZ31's properties and address challenges like limited formability and corrosion resistance. This review article is a valuable resource for researchers, engineers, and professionals exploring AZ31's potential for lightweight materials and diverse applications in different industries.