The stretch formability behavior of an AZ61 magnesium alloy plate produced by multi-pass friction stir processing (M-FSP) was investigated, with the applied load vs. displacement curves recorded during Erichsen cupping tests at different punching speeds at room temperature. The stretch formability of M-FSP AZ61 magnesium alloy was significantly enhanced, compared with that of its cast counterpart. The highest Erichsen index of 3.7 mm was obtained at a punching speed of 0.1 mm/min. The improved stretch formability was mainly attributed to the grain refinement stemming from the M-FSP and the presence of extension twinning to accommodate deformation during Erichsen cupping testing.