Magnesium alloys have been paid attention In automotive and industries as lightweight materials, and with these materials it has been attempted at deep drawing process for assessment of formability of sheet metal. For warm deep drawing process with a local heating and cooling technique, both die and blank holder were heated at warm temperature while the punch was kept at room temperature by cooling water. Warm deep-drawing process with considering heat transfer was simulated by finite element method to investigate the improvement of deep-drawability and temperature distribution of Mg alloy sheet. The effect of sham rate sensitivity index on the deformation profile was considered in this work and the simulation results revealed that considering heat transfer is very effective for deep-drawability of Mg alloy. The deformed blank In considering heat transfer was drawn successfully without any localized thinning and the cup height is higher in contrast to results of simulations in considering no heat transfer.