ABSTRACT In the present work, fine grained AZ31 magnesium (Mg) alloy was produced by equal channel angular pressing (ECAP) and exposed to simulated physiological conditions to investigate the role of refined microstructure on biomineralisation, degradation and corrosion initiated mechanical failure. ECAP was carried out at 200°C in Bc route for up to four passes (one complete cycle) and a grain refinement up to 1.9 ± 1.1 μm was achieved in AZ31 Mg alloy from a starting size of 36 ± 4.1 μm. X-ray diffraction (XRD) analysis confirms the development of non-basal texture in the ECAPed AZ31 alloy. The phases deposited on the surface of the samples after immersion carried out in simulated physiological environment were analysed by XRD and scanning electron microscopy which confirms the higher level of mineral phase deposition on ECAPed AZ31 alloy due to increased surface energy (39.11 ± 2.1 mJ/cm2) compared with base alloy (20.5 ± 5.3 mJ/cm2). Higher tensile strength (169.9 ± 5.5 MPa) was observed for the fine grained AZ31 Mg alloy compared with the base alloy (120.5 ± 3.7 MPa) to resist the corrosion initiated mechanical failure after exposing the samples to corroding simulated physiological environment for 1 day.