A stochastic model for simulating the microstructure formation of Mg alloy AZ91 during solidification was developed based on the finite element method(FEM) for macroscopic model of heat transfer calculation and a modified Cellular Automaton (mCA) for microscopic modeling of nucleation, growth of crystal. In this model, the effect of solute redistribution, interface curvature and preferred orientation was considered. A numerical simulation was developed with C++ program language. The computation was carried out to understand the effect of varying processing parameters, such as nucleation parameters and heat transfer coefficient, on the microstructure formation of AZ91. The result of simulation was displayed on screen.