The pursuit of advanced materials with enhanced or tailored properties has indeed been a crucial focus in various industries. From aerospace to automotive, and from nuclear power to space exploration, the need for materials that can withstand extreme conditions, offer improved performance, and ensure safety is paramount. Safety standards are vital in industries where materials are subjected to extreme conditions or where failure could have catastrophic consequences. Therefore, research in advanced materials not only focuses on enhancing properties but also ensuring that these materials meet rigorous safety standards. Friction stir processing (FSP) emerges as a transformative methodology, facilitating the achievement of superplasticity, enhanced ductility, heightened strength, toughness, and hardness, all while preserving the structural integrity of the material. In recent years, notable advancements have been witnessed in preparing magnesium (Mg) alloys, Mg composites, and functional Mg materials. This comprehensive review encompasses the latest developments, global significance, adherence to standards, and innovative strides in Mg alloys from 2011 to 2023. It includes the FSP processing techniques, governing mechanism, advantageous properties, grain size, dislocations and their impacts, corrosion, wear behaviour, formability studies, cryogenic FSP, underwater FSP and friction stir additive manufacturing. Readers will gain critical insights, receive constructive suggestions, and discern future directions from this extensive review, as it encapsulates the trajectory of advancements in Mg alloys and delineates promising horizons with potentially transformative impacts in materials science research. Prospects and potential areas would deem help upcoming researchers to pursue with new advanced materials.