This study aimed to investigate the change of mechanical properties with the rolling direction and shielding condition during laser welding of AZ31 magnesium alloy. AZ31 magnesium alloy sheets of 1mm thickness were welded using a continuous wave Nd:YAG laser with and without Ar shielding gas. The effect of Ar shielding gas and rolling direction on the mechanical properties were investigated using Vickers hardness, transverse-weld tensile. Porosity in the weld metals was investigated using an optical microscope. The experimental results showed that mechanical properties of AZ31 magnesium alloy laser welds were upgraded compared to those of base metal. Mechanical properties of AZ31 magnesium alloy laser welds were not substantially changed when Ar shielding gas was supplied.