Magnesium-related bone implants have garnered significant attention in the treatment of bone defects. The applications of magnesium in promoting bone repair mainly include degradable magnesium-based scaffolds owing to its special physical properties and composite materials modified by magnesium ions because of its biological activity. Although numerous studies have confirmed the unique application advantages and efficacy of magnesium in promoting bone repair, some obvious shortcomings persist, including the rapid degradation of magnesium-based scaffolds. In this review, the deficiencies of magnesium and its alloys in the construction of orthopedic implants and their key influencing factors were summarized; furthermore, some advanced improvement schemes were summarized and analyzed. Additionally, the application strategies of magnesium-modified bone implants are summarized and discussed. Lastly, this review incorporates the latest research and discoveries on magnesium in orthopedic science, comprehensively exploring the mechanism of magnesium's role in the complex microenvironment of bone defects from multiple dimensions. This paper provides a comprehensive summary and analysis of cutting-edge concepts in the design and development of magnesium-based bone implants, considering various perspectives such as the physical properties and biological functions of magnesium.