Recently, magnesium alloys have been widely applied in automotive and electronic industries as the lightest weight structural and functional materials. Warm forming of magnesium alloys has attracted much attention due to the very poor formability of Mg alloys at room temperature. The formability of magnesium alloy sheet at elevated temperature is significantly affected by the processing parameters. Among them the forming temperature, the punch speed, the geometrical shape of the blank, the blank holder force and the lubrication are probably the most relevant. In this research, the deep drawing of rectangular cups with AZ31 sheets was conducted at elevated temperatures with different process parameters. The finite element analyses were performed to investigate the effects of the process parameters on the formability of rectangular cup drawing and to predict the process defects during the process. The material yield condition was modeled using the isotropic Von Mises criterion. The flow stress data were obtained from tensile tests.