Microstructures and mechanical properties of dissimilar welding joint between Al alloy and Mg alloy by Friction Stir Welding (FSW) were investigated in comparison with laser welding of the same combination. Dissimilar joint of Al and Mg alloy by laser welding was very brittle because of building up Mg₁₇Al₁₂ inter metallic compounds in fusion zone. On the other hand, FSW is anticipated to welding dissimilar alloys with enough joint strength because it is a solid-state process without melting. In this paper, FSW was carried out to make dissimilar butt joints of Al alloy and AZ31 magnesium alloy with various tool rotational speed and welding speed. These joints showed higher hardness in their stir zones than that of parent AZ31 alloy because of Mg-Al inter metallic compound formation. However, the hardness of stir zone was lower than that of fusion zone of laser welding, and was changed with the welding parameters of tool rotational speed and welding speed (i.e. heat input ratio of FSW). The optimum welding conditions of Mg and Al dissimilar FSW joint and the influence of inter metallic compound distribution with mixing of materials in stir zone were discussed.