In order to solve the problem of forming parts with complex shape and small local feature size, solid granules medium forming (SGMF) was adopted. A part of magnesium alloy AZ31B with double-cone shape was taken as an example to analyze the forming process. The parameters of Gurson–Tvergaard–Needleman (GTN) were identified by an inverse method, comparing the experimental results with the numerical results. Based on the GTN model, the coupled finite element and discrete element (FE-DE) method was applied to simulate the forming process of the double-cone part with SGMF technology, and the relevant forming experiments were carried out. The results show that the quality of the workpiece can be improved with different friction coefficient of different area of the part. The fracture behavior and final wall thickness distribution obtained by experiment consist with those by simulation. So, it demonstrates the applicability of the FE-DE method with GTN damage model in analyzing formability of magnesium alloy, and the FE-DE method could embody the medium discrete characteristics fully during SGMF technology.