The microstructure of a friction stir welded magnesium alloy AM50 was examined by means of optical light microscopy. The chemical composition, particularly the iron content, and morphology of the oxide film were analyzed and discerned via auger electron spectroscopy (AES) and X-ray photoelectron spectroscopy (XPS). Corrosion behaviour of the welds and base materials were investigated by virtue of neutral salt spray tests and potentiodynamic polarization measurements in conventional cells and in a mini cell. The results demonstrate that minor increases in iron concentration as might be speculated to occur as a consequence of tool/work piece interaction during the welding process on the corrosion resistance of the weld can be ignored. The corrosion morphology was predominantly influenced by the distribution of the Mg 17Al 12 phase. Here, it was also found that the corrosion resistance of the friction stir weld varied in response to changes in the joint microstructure.