Tensile deformation in situ neutron diffraction of an extruded AZ31 alloy was performed to validate conventional procedures and to develop new procedures for stress evaluation from lattice strains by diffraction measurements of HCP-structured magnesium alloys. Increases in the lattice strains with respect to the applied true stress after yielding largely vary among [hk.l] grains. Some [hk.l] grains have little or no increase in lattice strain, making it difficult to use the conventional procedures to determine the average phase strain by using lattice constants or by averaging several lattice strains. The newly proposed procedure of stress evaluation from the lattice strains shows very high accuracy and reliability by weighting the volume fraction of [hk.l] grains and evaluating them in many [hk.l] orientations in addition to multiplication by the diffraction elastic constant. When multiple hk.l peaks cannot be obtained simultaneously, we recommend to use the 12.1 peak for stress evaluation. The lattice strain value evaluated from the 12.1 peak shows a good linear relationship with the applied true stress for the whole deformation region.