The poor corrosion resistance of magnesium limits its clinical applications. Accordingly, in the present study, carbon ions were incorporated into a AZ31b magnesium alloy surface via carbon plasma immersion ion-implantation to improve its corrosion resistance and biocompatibility. The surface morphology and properties of the modified alloy were evaluated by field-emission scanning electron microscopy, water contact angle measurement, Raman scattering, X-ray photoelectron spectroscopy, and energy dispersive X-ray spectroscopy. Furthermore, compositional depth profiles were obtained by glow discharge optical emission spectroscopy, revealing a Gaussian-like distribution of carbon concentration. Electrochemical and hydrogen-evolution analysis demonstrated the successfully improved corrosion resistance of the AZ31b Mg alloy, while its biocompatibility was demonstrated by MTT and cell-adherence assays.