Magnesium alloys appear as one of the most promising materials for many applications such as degradable implants. However, their mechanical, corrosion and integration behaviors need to be optimized to comply with this application. The present paper focuses on laser-assisted maskless microdeposition (LAMM) of silver nanoparticles, a surface treatment aiming to modify the surface characteristics for better integration of the magnesium implant. The LAMM process parameters for obtaining desirable depositions are reported. The impacts of the LAMM process on the deposit and the substrate microstructure have been investigated using various characterization techniques. The results show that laser processing, which can lead to particle sintering in the deposit, can be fine-tuned to achieve necking between nano particles, while the nano-scale characteristics of the deposited layer is retained. Microstructural characterization reveals significant grain refinement in the immediate vicinity of the surface, providing evidence for the thermal impact of the laser process on the substrate. The thermal profiles of the deposit and the substrate during processing are further investigated by developing a 3D finite element modelling method. The implementation of the model allows us to better understand the origin of the fine-grained sublayer as well as the overall thermal impact of the current laser processing method on the substrate.