Most magnesium alloy components available for automobile are made through die casting. In this paper, PAM-CAST (TM) commercial die casting simulation software based on the finite difference method, is employed to simulate the low-pressure die casting process of magnesium wheel hub. The temperature field and velocity field during filling and solidification stages are analyzed; the evolution of temperature distribution and liquid fraction was numerically studied. Then, the potential defects including the gas entrapments in the middle of the spokes, shrinkages between the rim and the spokes are predicted. The cooling performance of mould during casting is also investigated. Via analyzing the shrinkage defects generated under various cooling conditions, the cooling system set in the side mould is found to be more effective for enhancing the cooling capacity at the rim/spoke junction areas. With this cooling system, the hot spots at the junctions are obviously reduced and product quality is improved.