The Mg-6Zn-0.5Zr (ZK60) alloy has attracted extensive attention as one of the hopeful biomedical material candidates for bone implant applications on account of its unique degradability, favorable biocompatibility as well as mechanical compatibility. Nevertheless, the rapid degradation rate in the biological environment is the major hurdle for its clinical application in the field of bone implants. In this study, nanodiamond (ND) was incorporated into ZK60 alloy via selective laser melting technology to enhance its degradation resistance. The results showed that compared with selective laser-melted ZK60 (SLMed ZK60), the selective laser-melted ZK60 with 6 wt.% ND (SLMed ZK60−6ND) possessed the better degradation resistance with the lower degradation rate of 0.5 ± 0.1 mm/year. The enhancement of the degradation resistance was attributed to the fact that ND could promote the deposition of apatite and build up a dense and insoluble protective layer through the dissociation of the carboxyl groups on the ND surface, which could effectively hinder the further degradation of the Mg matrix. Meanwhile, the compressive strength and hardness were improved mainly due to grain refinement strengthening and ND dispersion strengthening. In addition, the SLMed ZK60−6ND possessed good cytocompatibility. These results suggested that the SLMed ZK60−6ND, with enhanced degradation resistance, improved mechanical properties, and good cytocompatibility, was an excellent biomedical material candidate for bone implant applications.