This work elucidates the antibacterial and corrosion protection efficiency of Mg substituted hydroxyapatite/multiwalled carbon nanotube composite coated 316L SS implant. A novel spray deposition method was adopted for the composite coating. The fabricated HA/MWCNT and Mg-HA/MWCNT films were characterized by X-ray diffraction, Fourier transform infrared spectroscopy and Field emission scanning electron microscopy. Mg addition played a significant role to decrease the crystallinity and increase the surface area of the HA/MWCNT composite. The vibrational spectra show shift in the PO stretching vibration of PO43− group at 1127 cm-1 after Mg substitution. The morphology of Mg-HA/MWCNT coating revealed spherical shaped apatite crystals with interconnected network like microstructure which is beneficial for bone tissue engineering. The Mg-HA/MWCNT nanocomposite revealed a better antibacterial activity against E.coli with a high zone of inhibition of 16 mm. The electrochemical behaviour of the Mg-HA/MWCNT/SS in simulated body fluid demonstrated an increased polarization resistance with decreased current density (icorr). Compared to bare HA/CNT coated implant, the Mg ions substituted implant revealed superior corrosion resistance with a lower corrosion penetration rate. Thus, the bioactive Mg-HA/MWCNT composite coated 316L SS implant developed with superior antibacterial and anticorrosion properties is considered as the potential aspirant for orthopaedic applications.