Magnesium alloy have known as degradable implant material due to biodegradable properties. However, by developed Mg alloy matrix composites containing a bioceramic will produced more biodegradable and does not need second surgical to remove the implants in body. Powder metallurgy route was used to fabricate the AZ91/BG composite by mixing, compacting and sintering. Mg alloy (AZ91) was reinforced with 0, 3, 6, and 9 wt% of bioglass (BG) before compact and sintered at 400°C for 2 hours. The Vickers hardness, scanning electron microscope, and x-ray diffraction are used to investigate the effect of BG particles addition on the mechanical properties and microstructure of the composite AZ91/BG. Bioactivity behaviour was studied by immersion test of AZ91/BG composite into phosphate buffered saline (PBS) solution for 72 hours. The results showed that as the addition of BG increases from 3 to 9 wt%, the hardness of AZ91/BG decrease from 43.3HV to 27.9HV. The result also showed the formation of protective layers or apatite layer on the surface of AZ91/BG composite after immersed in PBS solution for 72 hours. Phase analysis by XRD shows the presence of peak Ca10(OH)2(PO4)6 as the BG increased from 3 to 9 wt%. As a conclusion, AZ91/3BG shows the optimum composite for biomedical application based on its properties and bioactivity behaviour.