The microstructural changes and corrosion response of Resoloy^®, a resorbable Mg-Dy-based alloy, are the focus of this study. Hardness, tensile and compressive, and bending tests are used to monitor the changes in the mechanical properties of this material. The corrosion behavior is investigated by stress corrosion of C-rings. Hot-extruded tubes are solution heat-treated at different temperatures and times. The as-extruded condition shows a homogeneous fine-grained microstructure with matrix long-period stacking-ordered (LPSO) structures. Heat treatment at low temperatures and for short times does not significantly change the microstructure but reduces the hardness. Solution heat treatment at relatively high annealing temperatures and long annealing times causes grain growth, resulting in reduced hardness. The microstructure becomes inhomogeneous, medium-sized grains grow, the matrix LPSO structures dissolve, and small bulk LPSO phases develop. The matrix LPSO structures have a positive effect on the corrosion behavior. In particular, the short-term annealing condition shows the most uniform corrosion morphology. Resoloy^® is not free of pitting corrosion, but none of the samples fails by cracking.