Magnesium (Mg) alloy, particular Mg-zinc (Zn) series alloy, owns great potential as implant materials, despite it shows uncontrollable corrosion rate and inadequate mechanical performance. Herein, alloying treatment with rare earth yttrium (Y) was adopted to improve the overall performance of Mg-Zn-Zr alloy. In detail, Mg-Zn-Y-Zr (ZW61) parts were fabricated using laser additive manufacturing. Results showed that Y addition had contributed to the formation of quasicrystal I-phase (Mg3Zn6Y), which could serve as weak cathode and alleviate the occurrence of micro-galvanic corrosion within Mg matrix. Meanwhile, Y addition also promoted the development of compact corrosion film, which further delayed the corrosion of Mg matrix. Thus, laser-processed ZW61 parts showed a considerably reduced corrosion rate of 0.67 mm/year. More importantly, the quasicrystal I-phase contributed to a more significant Orowan strengthening effect, as it exhibited a near-coherent interface with α-Mg. Besides, rare earth Y decreased the energy of stacking faults, and thereby activated numerous non-basal slip systems during deformation, as proved by TEM observation. Thus, as-built ZW61 part showed simultaneously improved strength and plasticity. Furthermore, in vitro cell testing proved its favorable biocompatibility. Our research exhibited that laser-processed ZW61 was a competitive candidate for orthopedics device application.