An examination of consolidation conditions by hot extrusion of AZ31 magnesium alloy machined chips was conducted to enhance the bonding of individual chips, in order to improve the mechanical properties. Hot extrusions were carried out in the superplastic and non-superplastic region. Microstructural observations revealed that grain refinement was attained by extruding machined chips, and the grain sizes of the chip-extruded materials were smaller than 5 mum. The interfaces of individual chips of extruded materials were not identified when the chips were extruded in the superplastic region. The ultimate tensile strength was about 300 MPa and elongation-to-failure was about 10% for chip-extruded materials that were extruded in the superplastic region. These materials were comparable with the as-received alloy with respect to the room temperature strength, although the ductility was reduced to half. It was confirmed that chip consolidation utilizing superplastic flow is useful to enhance the bonding of individual grains.