The disposal of biomass ash (BA) will be of great importance for environmental protection and sustainability, and the aim of this study is to analyze the feasibility of the resourceful use of biomass ash in civil engineering materials. The effects of the content and type of biomass ash on the flowability, setting time, compressive strength, flexural strength, bonding strength, and drying shrinkage of magnesium phosphate cement (MPC) mortar were investigated. In addition, the effects of BA on the hydration and microstructure of MPC were investigated by X-ray diffraction (XRD), thermogravimetry, mercury intrusion porosimetry (MIP), and scanning electron microscope (SEM). The results showed that BA significantly affects the flowability and setting time of MPC mortar. The compressive and flexural strength of MPC mortars decreases with increasing amounts of BA. The drying shrinkage of MPC mortar specimens increases exponentially with the increase of BA content. The incorporation of BA will reduce the bonding strength of the MPC mortar, which is associated with increased drying shrinkage. The incorporation of BA into MPC results in low hydration product generation and poor pore structure. The incorporation of BA into MPC has a significant effect on the microstructure morphology and the hollow columnar-like hydration product may be formed by the reaction of BA with MgO in the paste.