High temperature mechanical properties and formability of the AZ61 magnesium alloy are evaluated in this paper. Tensile tests were conducted to obtain the formability parameters at elevated temperatures of up to 400˚C. The results showed that at higher temperature, yield strength and ultimate tensile strength of the material decrease significantly, while the material experiences an increase in ductility (maximum elongation before break). A model has been created in finite element software Abaqus to further study the deep drawability of the AZ61 Mg alloy. Effects of different process parameters such as punch and die geometry, forming speed and temperature as well as blank-holder force on square cup drawing of the AZ61 alloy were investigated and optimum process parameters are obtained which can be used as a design guide in sheet metal forming industry.