Herein, the cyclic mechanical behavior of AZ31 magnesium alloy after multipass friction stir processing (FSP) is investigated up to the very high‐cycle fatigue (VHCF) regime. The grain refinement and texture evolution after processing are evaluated to enhance the understanding of the fatigue response. Although ultimate tensile strength and ductility of the friction stir processed AZ31 increase up to about 320 MPa and 25%, respectively, the fatigue performance deteriorates in comparison with that of the as‐received condition due to the low yield strength and texture evolution after processing. Furthermore, analysis of fracture surfaces of the samples after cyclic loading reveals that the as‐received AZ31 is more prone to brittle fracture with multiple‐origin fatigue failure even at low stress amplitudes. On the contrary, the dominant failure mechanisms of the friction stir processed samples are initiation and propagation of cracks originating from the surface, porosities, and grain size inhomogeneity. Nevertheless, the capability of FSP for providing superior crack initiation resistance in the VHCF regime is demonstrated as a significant contribution. Based on a detailed study of prevalent microstructural features, processing–property–damage relationships are established indicating the major effect of FSP on the final performance of the AZ31 magnesium alloy.