In order to improve the bio-corrosion resistance of magnesium alloy Mg-8.0Al-1.0Zn-xGd in the simulated human fluid, different heat treatment procedures were studied. Results showed that annealing treatment lowered the alloy’s corrosion resistance and hardness, while T6 treatment (solid solution+ aging) improved the alloy’s corrosion resistance and hardness. Microstructure analysis showed that the β phase dissolved into α phase after the annealing treatment. Hence, annealing treatment decreased the alloy’s corrosion resistance. However, lots of β-phases were precipitated in the T6 heat treatment, and they impeded the corrosion extending.