Magnesium is a lightweight metal that holds great potential in automotive, aerospace and biomedical applications. Magnesium when incorporated with nanoparticles, exhibits simultaneous improvements in mechanical, tribological and biological properties without altering its density. This article presents a short review and analysis of mechanical (tensile and compressive), ignition, damping, tribological and in vitro degradation (corrosion and biocompatibility) behaviour of magnesium- based nanocomposites. Owing to the flexibility in tailoring for multiple applications, powder metallurgy routes are being explored to target unique microstructures, novel compositions and high performance in magnesium-based nanocomposites. The mechanical and in vitro study of magnesium nanocomposite synthesized by powder metallurgy route demonstrates improved strength, controlled degradation and good biocompatibility. The article also proposes a powder metallurgy route incorporating hybrid microwave sintering as a promising environment-friendly technique to develop magnesium nanocomposites for biomedical applications.