On the AZ31-O magnesium alloy plates of 20 mm in thickness, basal plane texture was studied for the samples taken from different layers. Compression tests were carried out in the rolling, width and thickness directions at room temperature. Tensile tests were conducted for the specimens taken from the different layers of the plates in different planar directions. The formability in deep drawing and stretch forming was evaluated for the thin sheet specimens taken from different layers of the plates and the results were discussed in relation to the texture and mechanical properties. The severity of the basal plane texture is higher at the surface layer than the inner layers. In tensile tests at room temperature, proof stress is higher for the surface layer than the inner layers, whereas elongation is lower and r-value is higher at the surface layer. In compression tests at room temperature, yield stress in the rolling and width directions is appreciably lower than in the thickness direction. At 573 K, anisotropic and non-uniform deformation behavior disappeared. Thin sheet specimens taken from inner layers of the plates showed higher formability than those from the surface layer in deep drawing and stretch forming. It is concluded that the formability of magnesium alloy sheets can be improved by decreasing the severity of the basal plane texture.