Effects of Ca addition on grain refinement, microstructure and mechanical properties of AZ31 Mg alloy were investigated. Due to Ca addition to Mg alloy (AZ31), the microstructure was refined, the quantity of $Mg_{17}Al_{12}$phase was reduced, and new $Al_2Ca$ phase was formed. The tensile property of AZ31 was increased with the minor addition of Ca, but was decreased rapidly over 0.2 wt.% of Ca content. The $Al_2Ca$ phase was considered to be detrimental to the mechanical property of AZ31 Mg alloy.