Ti-Mg composite rods exhibiting both bioinert and biodegradable characteristics have been manufactured by hot rotary swaging from elemental powders of titanium and magnesium. As a result of processing, spherical magnesium powders elongated in the direction of deformation and the dendritic structure in starting magnesium powders transformed into highly equiaxed grains. Magnesium particles in the outer layer of the composites were decorated by thin layer of MgO while the interior parts were free from oxides. As expected, Young's moduli, yield and peak strengths of the composites were observed to decrease with an increase in the magnesium content, while ductility of composites was enhanced by decreasing the amount of titanium. Composites fractured at an angle 45 to the loading axis along the titanium particle boundaries and through the magnesium particles via transgranular type of fracture with the accumulation of twins near the fracture surface of magnesium. Mechanical properties of the composites were observed to be comparable to that of bone and the composites exhibited biodegradable and bioinert character upon testing in Ringer's solution such that magnesium was selectively corroded and pores were formed at prior magnesium powder sites while titanium preserved its starting skeleton structure. In addition, it was found that volume ratio of titanium and magnesium, and continuous MgO layer are the most important parameters which should be considered in designing biodegradable magnesium alloys with an appropriate corrosion rate. (C) 2013 Elsevier B.V. All rights reserved.