In this work, we study physical and mechanical properties of oxide films formed on AZ91D magnesium alloy by plasma anodization at different temperatures. It is found that the higher the electrolyte temperature, the lower is the breakdown voltage of oxide layer. This is probably because films formed at higher temperatures are thinner and denser. Moreover, electrolyte temperature plays an important role in the physical properties of the films. As the electrolyte temperature increases from 20 to 50 °C, the hardness of the oxide layer increases. Friction test against steel balls indicates that wear scars become narrower for films formed at higher temperatures because the films are harder, as indicated by the Vickers hardness. The thinner and denser nature of the oxide film formed at 50 °C is also advantageous for heat transfer when film is used as a heat sink. Laser flash test results show very fast heat transfer for AZ91D with plasma anodized oxidel ayer formed at higher temperatures.