This paper investigated the Mg-rich phase precipitation behavior and the corrosion performance throughout the thickness direction within the stirred zone (SZ) of friction stir welded (FSW) AA5083 alloy after 175 °C/100 h sensitization. For the as-welded SZ, the recrystallized grain size gradually decreased from the top surface (5.5 μm) to the bottom (3.7 μm). The top and bottom of the SZ maintained relatively high levels of deformed grains and accumulated strain induced by either shoulder pressing or pin stirring. After 175 °C/100 h sensitization, 100 nm thick β′-Al3Mg2 precipitates were present along the grain boundaries (GBs) in the SZ. The bottom of the SZ exhibited more continuous precipitates along GBs due to the fine grain size and the large fraction of high-angle grain boundaries (0.724%). Although the as-welded SZ exhibited excellent corrosion resistance, it became extremely vulnerable to intergranular cracking (IGC) and stress corrosion cracking (SCC) after sensitization. The large SCC susceptibility indices of the SZ samples ranged from 66.9% to 73.1%. These findings suggest that sensitization can strongly deteriorate the corrosion resistance of the Al-Mg FSW joint, which is of critical importance for the safety and reliability of marine applications.