In this paper, the AZ31 magnesium (Mg) alloy coating with antibacterial properties and corrosion resistance was successfully obtained through friction stir processing (FSP) combined with micro arc oxidation (MAO). FSP was firstly utilized to introduce hydroxyapatite (HA) and silver (Ag) particles and prepare the precursor of AZ31 Mg alloy coating. Subsequently, MAO was employed to transfer HA and Ag particles into the surface of Mg alloy, then forming the coating. It is shown that the dispersed HA particles in the precursor promoted the coating growth in the MAO process and increased the thickness of the coatings, improving in the corrosion resistance. The Ag particles with an average size of 2-10 nm refined by FSP were easily to be transferred from the precursors to the Mg alloy coatings during the MAO process, the lower Ag content reduces the corrosion current density of the coating and improves its corrosion resistance. At the same time, the antibacterial performance of the coating has been significantly improved, and the coatings exhibited excellent antibacterial properties with the highest rates of against Staphylococcus aureus and Escherichia coli reaching to 99.4% and 99.6%, respectively.