This study investigates nonlocal and surface effects on the dispersion behaviors of Shear horizontal (SH) waves in piezoelectric(PE)-piezomagnetic(PM) bilayer systems. The interface between these two layers is imperfectly bonded. The general governing equations are derived from the nonlocal magnetoelectroelastic (MEE) theory by adding an inherent length. The G-M model and generalized Young-Laplace equations have been used to incorporate surface effects into the boundary conditions of the bilayer systems. The closed-form dispersion equation is obtained analytically for electrically open and magnetically short conditions. Numerical solutions are utilized to investigate the effects of nonlocal scale parameters and surface parameters on SH surface wave propagation. Contrary to the results of classical theory, the coupling effects of nonlocal small-scale and surface piezoelectricity are more significant than individual effects. Also, it has been observed that the imperfectness parameter across the interface and the thickness ratio of the bilayer significantly affect the phase velocity. Moreover, 2D and 3D plots of the mode shapes of field variables for the propagation of SH waves are presented graphically. These results are validated by conducting analyses excluding nonlocal effects. This allows us to isolate the specific impact of surface effects in the piezoelectric–piezomagnetic bilayer system, drawing connections to existing results and enhancing the robustness of our findings. This study provides valuable insights into complex wave dynamics, helping to optimize the performance and functionality of such smart composites in various engineering applications.