The effect of the oscillating metal vapor plume on the keyhole and molten pool behavior during the laser beam welding of AlMg3 aluminum alloys is investigated by the experimental and numerical method. The real-time height of the metal vapor plume is measured by high-speed camera observation. The obtained experimental results are used to evaluate the additional heating source and laser beam attenuation caused by the scattering and absorption based on the Beer-Lambert theory. Furthermore, the dynamic behavior of the metal vapor plume is incorporated into a 3D transient heat transfer and fluid flow model, coupled with the ray tracing method, for the laser beam welding of the AlMg3 alloy. It is found that the additional heating resulting from the scattered and absorbed laser beam energy by the metal vapor plume significantly expands the shape of the molten pool on the top region. Moreover, the oscillating metal vapor plume caused the fluctuation of the high temperature region in the molten pool. The probability of keyhole collapse at the bottom increases to 67% due to the oscillating laser power induced by the laser beam attenuation. The internal interplay between the metal vapor plume, molten pool shape, and the keyhole collapse are obtained. The developed model has been validated by the experiments, which shows a good agreement.