Through experimental observation and auxiliary numerical simulation, this investigation studies the different types of grain refinement of 5754 aluminum alloy laser beam welding by applying a transverse oscillating magnetic field. Scanning electron microscope results have proved that the application of a magnetic field can reduce the average crystal branch width and increase its number. The interaction between the induced eddy current generated by the Seebeck effect and the applied external magnetic field produces a Lorentz force, which is important for the increase in the number of crystal branches. Based on the theory of dendrite fragmentation and the magnetic field-induced branches increment, the grain size reduction caused by the magnetic field is studied. Furthermore, the effects of the magnetic field are analyzed by combining a phase field method model and simulations of nucleation and grain growth. The grain distribution and average grain size after welding verify the reliability of the model. In addition, the introduction of a magnetic field can increase the number of periodic three-dimensional solidification patterns. In the intersection of two periods of solidification patterns, the metal can be re-melted and then re-solidified, which prevents the grains, that have been solidified and formed previously, from further growth and generates some small cellular grains in the new fusion line. The magnetic field increases the building frequency of these solidification structures and thus promotes this kind of grain refinement.