A novel process that combines squeeze casting with partial remelting to obtain AZ61 magnesium alloy with semi-solid microstructures was proposed. In this route, the squeeze casting was used to predeform the magnesium alloy billets to obtain small dendritic structures. During subsequent partial remelting, small dendritic structures transform into globular grains surrounded by liquid films. The results show that the squeeze casting AZ61 alloy after partial remelting produces more ideal, finer semi-solid microstructure compared with as-cast AZ61 alloy treated by the same isothermal holding conditions. Moreover, the mechanical properties of the thixoformed AZ61 alloy prepared by squeeze casting plus partial remelting are better than those of the thixoformed alloy prepared by conventional casting plus partial remelting.