Microstructure, mechanical and corrosion properties of binary magnesium-dysprosium (Mg-5, 10, 15, 20 wt.% Dy) alloys were investigated for medical applications. In the as-cast condition, the distribution of Dy is quite inhomogeneous. Mg-10Dy alloy exhibits a moderate tensile and compression yield strength, and the best elongation and corrosion resistance. After T4 (solutionizing) treatment, the distribution of Dy becomes homogeneous. The tensile and compression yield strength of all Mg-Dy alloys decreases. The elongation remains unchanged, while the corrosion resistance is largely improved after T4 treatment.