A creep resistant Mg alloy MRI 230D was subjected to laser surface treatment using Nd:YAG laser equipped with a fiber optics beam delivery system in argon atmosphere. The laser surface treatment produced a fine dendritic microstructure and this treatment was beneficial for the corrosion and wear resistance of the alloy. Long-term linear polarisation resistance and Electrochemical Impedance Spectroscopy measurements confirmed that the polarisation resistance values of laser treated material were twice as high as that for the untreated material. This improved behaviour was due to the finer and more homogenous microstructure of the laser treated surface. The laser treatment also increased surface hardness two times and reduced the wear rate by 25% due to grain refinement and solid solution strengthening.