The friction stir welding (FSW) process shows promising results in joining dissimilar metals which are otherwise almost impossible to join using traditional welding techniques. Being a new technique, the deformation and the failure mechanism of the joints made by the FSW process needs to be investigated. In this work, a joint between AZ31 Mg alloy and DP590 steel is modeled using phenomenological crystal plasticity formulation on the mesoscale in the form of a representative volume element (RVE). The interface of the two materials is modeled using a cohesive zone model. A parametric study has been performed to understand the effect of grain size and interface fracture toughness as well as strength on the mechanical performance of the joint. It was found that the grain size of AZ31 Mg alloy, as well as DP590 steel, has little effect on the overall joint performance. On the other hand, interface fracture toughness and strength have a significant impact on the mechanical properties of the joint.