Structural components for aerospace, electronics and automobile industry are the main applications for magnesium alloys due to their lightweight and high specific strength. The adoption of magnesium alloys in sheet forming processes is still limited, due to their low formability at room temperature caused by the hexagonal crystal structure. In this paper, the authors aim to improve the formability of AZ31 magnesium alloy. For this, experiment and finite element analysis on used warm deep drawing process with a local heating and cooling technique were done. Both die and blank holder were heated at various warm temperature while the punch was kept at room temperature by cooling water.