In the present study, an attempt has been made to improve the surface hardness and wear resistance of magnesium alloy AZ91D by laser surface melting (LSM) with a 2kW continuous wave CO2 laser. The microstructure of the laser surface melted zone consists of fine dendrites with an average grain size of less than 10μm. Micro hardness of the melted zone was improved to 70-85HV as compared to 53HV of the substrate. The wear behavior of the laser surface melted layer was investigated using a ball-on-flat apparatus under dry sliding condition. Compared with the as-received AZ91D, the wear volume of the laser surface melted layer was decreased by 51%, the wear resistance of the laser surface melted layer was improved significantly.