Nowadays, magnesium alloys are emerging in biomedical implants for their similar properties to natural bones. However, the rapid degradation of magnesium alloys in biological media hinders successful implantation. Refinement of microstructure, as well as reinforcement particles can significantly improve the degradation rate. In this work, multi-pass friction stir processing (FSP) was proposed to synthesize WE43/nano-hydroxyapatite (nHA) surface composite, the microstructure, reinforced particle distribution, micro-hardness, corrosion behavior and in-vitro bioactivity were studied. The subsequent FSP passes of WE43 alloy and WE43/nHA composite refined the grain size which was reduced by 94.29% and 95.92% (2.63 and 1.88 µm, respectively) compared to base metal after three passes. This resulted in increasing the microhardness by 120% (90.86 HV0.1) and 135% (105.59 HV0.1) for the WE43 and WE43-nHA, respectively. It is found that increasing FSP passes improved the uniform distribution of nHA particles within the composite matrix which led to improved corrosion resistance and less degradation rate. The corrosion rate of the FSPed WE43/nHA composite after three passes was reduced by 38.2% (4.13 mm/year) and the degradation rate was reduced by 69.7% (2.87 mm/y). This is attributed to secondary phase (Mg24Y5 and Mg41Nd5) particle fragmentation and redistribution, as well as a homogeneous distribution of nHA. Additionally, the growing Ca-P and Mg(OH)2 layer formed on the surface represented a protective layer that reduced the degradation rate. The wettability test revealed a relatively hydrophilic surface with water contact angle of 49.1 ± 2.2° compared to 71.2 ± 2.1° for base metal. Also, biomineralization test showed that apatite layer grew after immersion 7d in simulated body fluid with atomic ratio of Ca/P 1.60 approaching the stoichiometric ratio (1.67) indicating superior bioactivity of FSPed WE43/nHA composite after three passes. These results raise that the grain refinement by FSP and introduction of nHA particles significantly improved the degradation rate and in-vitro bioactivity of WE43 alloy for biomedical applications.