Deformation characteristics and damage evolution during warm backward extrusion of bulk AZ31 Mg alloy were investigated using finite element analyses. AZ31 Mg alloy was assumed as a hardening viscoplastic material. The tensile tests of AZ31 Mg alloy in previous experimental works showed the ductile fracture even at the warm temperature of $175^{circ}C$. In this study, damage evolution model proposed by Lee and Dawson, which was developed based on the growth of micro voids in hardening viscoplastic materials, was combined into DEFORM 2D. Effects of forming temperature, punch speed, extrusion ratio and size of work piece on formability in warm backward extrusion as well as on mechanical properties of extruded products were examined. In general, finite element predictions matched the experimental observations and supported the analyses based on experiments. Distributions of accumulated damage predicted by the finite element simulations were effective to identify the locations of possible fracture. Finally, it was concluded that the process model, DEFORM2D combined with Lee & Dawson#s damage evolution model, was effective for the analysis of warm backward extrusion of AZ31 Mg alloys.