Owing to their remarkable structural characteristics, magnesium and its alloys are seen as one of the twenty-first century's most attractive lightweight structural materials. Nevertheless, their extensive utilization is constrained by their inadequate corrosion and wear resistance characteristics. The cladding processes are surface alteration techniques deployed to improve surface attributes such as hardness, heat resistance, biocompatibility, wear, oxidation, and corrosion resistance by depositing a dense layer of novel materials on the surface of traditional materials. Transition metals, alloys, ceramics, composites, nanomaterials, rare earth oxide, and various solid lubricant additives are common novel materials utilized in cladding processes. Due to the distinct advantages, such as high efficiency, enhanced metallurgical joining of the coating to the substrates, lesser substrate distortion, thinner heat-affected zone (HAZ), rapid solidification and higher cooling rates, the laser-cladding technique is often preferred over other surface modification techniques. The present review discusses in depth the laser-cladding process and the impact of processing parameters, such as laser power, scanning velocity, beam focal position, and material feeding methods, on the wear and corrosion properties essentially of Mg and its alloys. Furthermore, the difficulties encountered in laser cladding and alloying on magnesium alloys, alternate methods, and future scope of development are also reviewed.