Mg-RE electrode was used for deposition of micro-arc coatings on AZ31 magnesium alloy upon variation in there different processing parameters(high, low and middle pulsed discharges). Mass transfer trends from electrode to substrate and microstructure of Mg-RE coating on AZ31 substrate were observed. Characterization has been performed by using scanning electron microscopy (SEM) coupled with energy dispersive X-ray spectroscopy (EDX). The microstructure, properties (continuity, thickness) were investigated. It is found that an increase in the energy mode above a certain threshold value leads to an increase in mass gain from electrode to substrate.