Multifunctional materials are propitious materials with numerous functionalities that make them an ideal option for implants and biomedical applications that should simultaneously fulfill various requirements, including satisfactory mechanical strength, biocompatibility, antibacterial property, hydrophilicity, drug delivery, etc. Magnesium, as a metallic biomaterial, fulfills the required mechanical properties, but unfortunately, in some ways alone, it cannot provide the required biological properties. For instance, Mg alloys suffer from poor corrosion resistance and high biodegradability, which should be carefully controlled. On the other hand, multifunctional materials alone are not able to provide the required properties in biomedical applications because the vast majority of them do not have the necessary strength and stability. Therefore, the use of magnesium together with multifunctional or composite coatings will be a very advantageous choice for meeting the needs of implants and biomedical materials. The current study focuses on the introduction and utilization of various multifunctional coatings and composites on Mg‐based alloys for biomedical applications. Numerous organic and inorganic materials could be utilized as composites or multifunctional materials, such as polymers, hydroxyapatites, hydrogels, calcium phosphates, alginates, hyaluronic acids, chitosan, etc. In this regard, numerous types of coating and composite materials, their production technologies, mechanisms, resultant properties, and the involved parameters are thoroughly discussed to provide a comprehensive guide for those interested in this field. It is hoped that this study will pave the way for the production of advanced and smart multifunctional materials with unique properties and play a role in the design of a new generation of Mg‐based biomedical materials.This article is protected by copyright. All rights reserved.