In the present work, cross-wavy bending at room temperature was carried out to tailor the microstructure and stretch formability of rolled AZ31 sheets. Wavy bending processing generates profuse {10−12} twins and a tilt basal texture. Subsequent recrystallization annealing causes grain coarsening and enhances the intensity of twin-orientation. The combined use of wavy bending and annealing can maintain high tensile ductility and remarkably enhances the stretch formability of rolled AZ31 sheet. It can be mainly attributed to the non-basal texture in the wavy bent sheet which increases the thinning capability during in-plane tension.