The effect of pre-deformation annealing on the microstructure and texture of an AZ31 + 0.74 wt% Sr alloy has been investigated. As-cast samples as well as three samples that have been annealed at 400 A degrees C for 10, 30, and 120 min were extruded at 300 A degrees C. Results indicate that annealing transforms the bulky non-equilibrium Al-Mg-Sr precipitates to stable Al4Sr spheroids. As the extent of this transformation increases before extrusion, there is seen an increase in the amount of uniformly dispersed intermetallic stringers in the extruded material. Texture measurements reveal the alignment of basal poles with the compression axis (perpendicular to the circular cross section of the extruded bar) and the formation of the basal ring texture in all the samples. However, an increase in the duration of the pre-deformation anneal switches the plane facing the extrusion direction from first order prismatic (10-10) to second order prismatic planes (11-20). Annealing decreases the Al solute concentration in Mg and lowers the lattice resistance against dislocation movement. Consequently, the more favorable (0002)[11-20] slip system is activated in grains that see low basal resolved shear stress (tau). As a result, those grains work harden and are consumed by dynamic recrystallization (DRX). However, the (0002)[-1100] slip system with high tau still avoids basal dislocation movement. Hence, the grains with high tau((0002)[-1100]), which need to move dislocations in the (0002)[-1100] system to fulfill the strain compatibility conditions across the microstructure would be prevented from work hardening and DRX. This specific orientation has a (11-20) plane facing the extrusion direction.