Magnesium alloy is extensively used in aircraft, automobiles, and electronic industries due to its low density, high specific strength, and enhanced machinability. However, low hardness and poor corrosion resistance limit its application. In this work, an Al-TiC metal matrix composite (MMC) was prepared on AZ31B magnesium alloy via laser cladding. The effects of laser power and TiC content on the microstructure, hardness, and corrosion resistance of the MMC were investigated. The results showed that the MMC with 10% TiC had a hardness of 184 HV0.1, which was 3.5 times higher than 52 HV0.1 of the substrate. The current density of MMC with 10% TiC was 3.90 × 10−7 A/cm2, which was three orders of magnitude lower than 5.45 × 10−4 A/cm2 of the substrate. Due to more intermetallic compounds (IMCs) and TiC particles, the MMC with 30% TiC had higher hardness. The increased laser power would not change the phase composition, but it contributed to the formation of a concave crescent shape, promoted the diffusion of Mg, and induced the formation of a thicker Al3Mg2 transition layer. Modifications in the TiC concentration markedly influenced the coating’s microstructural characteristics.