The oxide film on magnesium offers considerable surface protection in rural and some industrial environments and the corrosion rate lies between that of aluminum and low carbon steels. Galvanic coupling of magnesium alloys, high impurity content such as Ni, Fe, Cu and surface contamination are detrimental for corrosion resistance of magnesium alloys. Alloying elements can form secondary particles which are noble to the Mg matrix, thereby facilitating corrosion, or enrich the corrosion product thereby possibly inhibiting the corrosion rate. Bimetallic corrosion resistance can be increased by fluxless melt protection, choice of compatible alloys, insulating materials, and new high-purity alloys. Magnesium is relatively insensible to oxygen concentration. Pitting, corrosion in the Crevices, Filiform corrosion are observed. Granular corrosion of magnesium alloys is possible due to the cathodic grain-boundary constituent. More homogeneous microstructures tend to improve corrosion resistance. Under fatigue loading conditions, microcrack initiation in Mg alloys is related to slip in preferentially oriented grains. Coating that exclude the corrosive environments can provide the primary defense against corrosion fatigue. Magnesium alloys that contain neither aluminum nor zinc are the most SCC resistant. Compressive surface residual stresses as that created by short peening increase SCC resistance. Cathodic polarization or cladding with a SCC resistant sheet alloy are good alternatives. Effective corrosion prevention for magnesium alloy components and assemblies should start at the design stage. Selective surface preparation, chemical treatment and coatings are recommended. Oil application, wax coating, anodizing, electroplating, and painting are possible alternatives. Recently, it is found that a magnesium hydride layer, created on the magnesium surface by cathodic charging in aqueous solution is a good base for painting.