Microstructure, shear strength, and bio-corrosion behavior of three extruded Mg–2Zn–1Mn (ZM21), Mg–2Zn‒1Gd (ZG21) and Mg–2Al–1Mn (AM21) alloys were investigated to develop degradable implant alloys. Results showed that extrusion gave rise to dynamic recrystallization (DRX), so that the fine grain sizes of 8.5, 4.2 and 2.3 μm were achieved in the ZM21, ZG21, and AM21 alloys, respectively. As a novel method for the evaluation of mechanical properties of small samples such as biodegradable implants, slow strain rate shear (SSRS) test was devised and performed at room temperature under shear strain rate of 7.1 × 10−5 s−1. These tests were carried out in the immersed condition inside of phosphate buffered saline (PBS) solution as well as in the air. The respective ultimate shear strength (USS) values of 111.7, 117.9 and 136.1 MPa for the ZM21, ZG21 and AM21 alloys, obtained in the air, were decreased to 105.1, 98.7 and 115.2 MPa in the tests inside the PBS solution as a result of damaged microstructural integrity. Mechanical properties, hydrogen evolution, and electrochemical tests results indicated that AM21 can provide higher strength and resistance against the penetration of corrosive solution, due to the more uniform structure and finer grain size as well as the presence of an Al- and Mn- containing oxide layer on the material surface. The new SSRS test was found to be a suitable method to study the stress corrosion cracking (SCC) behavior of small Mg samples. The findings of this test were justified by the results of hydrogen evolution and electrochemical corrosion tests.