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The corrosion behaviour of Mg98.5-Nd1-Zn0.5 (at. %) alloy was studied in phosphate buffered saline (PBS) solution to evaluate its degradation performance as a potential candidate for biomedical applications. The alloy, produced by casting and hot extrusion, consists of a fine-grained magnesium matrix with an average grain size of 3.8 μm embedding a high volume fraction of (Mg, Zn)₁₂Nd precipitates. Hydrogen release tests revealed a stable low corrosion rate of 0.6 mm/year after 24 h of immersion. Electrochemical testing data proved good correlation with the data from hydrogen evolution, with the corrosion rate stabilizing below 1 mm/year.