In the current work, cyclic expansion extrusion with an asymmetrical extrusion cavity (CEE-AEC), as a relatively novel severe plastic deformation method, was applied to fabricate an AZ31B magnesium alloy plate with a size of 50 × 100 × 220 mm, and the resultant microstructure, texture development, and mechanical properties were systematically investigated. A refined and homogeneous grain structure was achieved after three passes of deformation due to dynamic recrystallization. The grain refinement degree in comparison to as-cast alloys was more than ~96%. With the increasing number of CEE-AEC passes, a basal inclination texture was gradually formed, with the basal planes inclined ~45° from the transverse direction to the extrusion direction, which could be attributed to the introduction of an asymmetrical extrusion cavity that led to an increasing Schmid factor for the activation of basal <a> slip systems. The comprehensive mechanical properties were improved by successive multi-passes of CEE-AEC processing, especially due to the ductility reaching to 30.0 ± 1.3% after three passes of deformation. The competition between the grain refinement and texture modification were the main strengthening mechanisms.