The existing phenomenological theories of plastic forming of sheet metal lack the predictability of the influences of dislocations and precipitates on viscoplastic damage in Al-Zn-Mg alloys. This study examines the evolution of grain size that occurs when the Al-Zn-Mg alloy undergoes a hot deformation process, specifically concentrating on dynamic recrystallization (DRX). The uniaxial tensile tests are conducted at deformation temperatures ranging from 350 to 450 °C and strain rates of 0.01–1 s−1. The intragranular and intergranular dislocation configurations and their interactions with dynamic precipitates are revealed by transmission electron microscopy (TEM). In addition, the MgZn2phase induces microvoid formation. Subsequently, an improved multiscale viscoplastic constitutive model is established that emphasizes the effect of precipitates and dislocations on the evolution of microvoid-based damage. Using a calibrated and validated micromechanical model, the simulation of hot-formed U-shaped parts is conducted through finite element (FE) analysis. During the hot U-forming process, the formation of defects is expected to have an impact on both the distribution of thickness and the level of damage. In particular, the damage accumulation rate is influenced by temperature and strain rate, and local thinning is caused by the damage evolution of U-shaped parts.