A format of f(ik,jk ) = Es (ide )2(1-(jre )2) to express cold deformed stored energy is suggested in a phase-field model for simulating recrystallization in alloys. Using AZ31 magnesium alloy as an example, the recrystallization process is simulated by the new model, and the simulation results are in good agreement with experimental measurements. The nucleation process of recrystallization is realized for the first time by the model based on the physical background. The simulation results show that the grain growth of a cold deformed alloy in the annealing process indicates automatically two stages: recrystallization driven by the restored energy and thermal growth driven by boundary energy. A theoretical time spent in finishing recrystallization, obtained by simulation, is found to be 2/3 of that obtained by industrial practice. The mechanism and the experimental results about the influence of cold deformation on subgrain size and stored energy are examined, and the experimental results are introduced into the simulation. The common experimental phenomenon shows that there is a peak at the critical strain on the curve of recrystallized grain size versus cold strain. A theoretical explaination to the mechanism of the peak occurrence is also discussed.