Thixomolding of Mg-alloy is a semi-solid injection molding process utilizing thixotropic phenomenon. Using this process, higher strength, thinner wall section and tighter tolerance without porosity are obtained. It has been applied for production of near-net-shape magnesium component. To design optimal thixomolding process of Mg-alloy part, molding conditions such as slurry temperature, mold temperature and injection time should be determined properly. Selection of these parameters has been dependent upon engineers' experience and intuitiveness. In this paper, to improve mechanical properties of the thixomolded product, optimal selection of process variables such as injection velocity, barrel temperature and die temperature in the process has been studied through microstructural analysis and Taguchi method. Performance of the process is verified through experiments.