In this work, we investigate the impact of Bi addition on the heat resistance of as-extruded AZ31 alloy during high-temperature annealing and hot compression. Electron backscattered diffraction (EBSD) technique and quasi in situ scanning electron microscopy (SEM) are used to analyze the evolution of microstructures during high-temperature annealing and hot compression, respectively. The test results show that with a prolonged annealing time, the as-extruded AZB313 alloy exhibited a lower grain growth rate, due to the pinning effect of Mg₃Bi₂ phases distributed at grain boundaries. On the other hand, as the compressive temperature increased, the downtrend of strength is delayed in the as-extruded AZB313 alloy. Thermally stable Mg₃Bi₂ phases dispersed within the grains act as barriers, hindering the motion of dislocations, which not only provides a more effective precipitation strengthening effect, but also increases the resistance to deformation of grains. Moreover, grain boundary sliding can also be restricted by Mg₃Bi₂ phases located at grain boundaries. This work provides a new idea for the development of heat-resistant wrought Mg alloys.