As a smart implant, magnesium (Mg) is highly biocompatible and non-toxic. In addition, the elastic modulus of Mg relative to other biodegradable metals (iron and zinc) is close to the elastic modulus of natural bone, making Mg an attractive alternative to hard tissues. However, high corrosion rates and low strength under load relative to bone are some challenges for the widespread use of Mg in orthopedics. Composite fabrication has proven to be an excellent way to improve the mechanical performance and corrosion control of Mg. As a result, their composites emerge as an innovative biodegradable material. Carbon nanotubes (CNTs) have superb properties like low density, high tensile strength, high strength-to-volume ratio, high thermal conductivity, and relatively good antibacterial properties. Therefore, using CNTs as reinforcements for the Mg matrix has been proposed as an essential option. However, the lack of understanding of the mechanisms of effectiveness in mechanical, corrosion, antibacterial, and cellular fields through the presence of CNTs as Mg matrix reinforcements is a challenge for their application. This review focuses on recent findings on Mg/CNT composites fabricated for biological applications. The literature mentions effective mechanisms for mechanical, corrosion, antimicrobial, and cellular domains with the presence of CNTs as reinforcements for Mg-based nanobiocomposites.