Grain-twin interactions are significant in texture modification under thermodynamic driving force. In this study, annealing-driven twinning/detwinning behavior, grain growth, and corresponding texture evolution in a pre-deformed AZ31 magnesium alloy were systematically tracked and investigated via in-situ heating synchrotron X-ray diffraction and quasi in-situ electron backscattered diffraction techniques. A twinning texture is generated in the pre-deformed sample due to the activation of {1012} tensile twinning. During annealing, dislocation annihilation occurs between 100 and 280 °C, and recrystallization occurs above 280 °C, manifesting as the initial residual matrix and twins being competitively swallowed by each other, forming a bimodal texture. The recrystallization process is completed by boundary movement, which depends on the energy difference across the boundary. In addition, it is found that the grain boundaries favor movement towards the side with higher stored energy, regardless of the boundary type or the boundary energy.