Purpose. To develop a rational heat treatment regime for a new biodegradable magnesium alloy of the Mg-Zr-Nd system, to ensure enhanced mechanical properties throughout the entire treatment period. Research methods. Differential thermal analysis (DTA) was used to determine phase transformation temperatures. Microstructure analysis was conducted using optical microscopy (“Neophot 32” and “OLYMPUS IX 70”) and scanning electron microscopy with energy-dispersive X-ray spectroscopy (SELMI RЕМ-106I). Mechanical properties were determined using an INSTRON 2801 testing machine. The influence of cooling rate on microstructure and properties was studied using ProCAST simulation software. Heat treatment was carried out in a Bellevue type shaft furnace and a PAP-4M furnace. X-ray analysis was used to detect internal defects in samples. Results. A new heat treatment regime was developed for the biodegradable Mg-3.15Nd-1.25Zr-0.6Zn (wt%) alloy. Using differential thermal analysis and microstructure studies at various quenching temperatures, the optimal quenching temperature was established at 560 °C. Empirical relationships describing the influence of heat treatment parameters on the alloy's microstructure were calculated. The new heat treatment regime (quenching from 560 °C for 8 hours, air cooling + aging at 200 °C for 16 hours) resulted in improved mechanical properties (UTS = 276–282 MPa, δ = 5.2–5.8%) compared to the standard T6 regime. Scientific novelty. For the first time, a comprehensive study of the influence of heat treatment parameters on the structure and properties of a new Mg-3.15Nd-1.25Zr-0.6Zn (wt%) alloy with increased content of alloying elements was conducted. New dependencies describing the influence of quenching temperature on the alloy's grain size were established. Practical value. A new heat treatment regime for the biodegradable magnesium alloy was developed, which ensures complete dissolution of the pseudoeutectic phase and formation of strengthening phases, resulting in improved mechanical properties compared to the standard alloy Mg-2.5Nd-0.4Zn-0.5Zr (wt%) and the standard T6 regime.