Magnesium (Mg) alloys are gaining more attention in recent times as biodegradable materials. However, two major problems with Mg alloy implants are bacterial infections and poor corrosion resistance. In this context, a composite surface (Mg–Zn–Dy–Al2O3/HA) is developed using surface modification techniques. First, Al2O3 + HA composite powder is coated on Mg–Zn–Dy alloy to attain coated surface (C-AHa). Next, the C-AHa surface is subjected to friction stir processing to develop composite surface (F-AHa). Microstructural characterization reveals that, the Al2O3 + HA particles were distributed evenly into the Mg–Zn–Dy substrate. Antimicrobial activities against Escherichia coli and Staphylococcus aureus reveal low adhesion of bacteria on the F-AHa sample surface due to low surface energy (37.83 ± 0.22 mN/m) and low surface roughness (0.36 ± 0.1 µm). Further, the cytotoxicity tests confirm that the F-AHa sample shows significant improvement in cell viability (98%) after 7 days and non-toxic against the mouse osteoblast cells. In Vitro corrosion study observations demonstrate that the corrosion rate for the F-AHa sample is decreased by 72% compared to the C-AHa sample. Thus, the results of this study for the fabricated composites are promising for antimicrobial, biocompatible and bioabsorbable temporary implants. [ABSTRACT FROM AUTHOR]