The present study was aimed at the preparation of electrophoretic deposition of gadolinium oxide on anodized Mg alloy to enhance the implant surface properties. Gadolinium was electrophoretically deposited on anodized Mg and sintered at 250 degrees C for 1 h. The coating consists of micro- and nano-fissures on the surface. The coating's thickness was increased to 9.8 mu m, which is onefold higher than the anodized sample. The formed gadolinium oxide exhibited a cubic crystal structure. The apatite formation was initiated within 24 h of immersion in Earle's solution, and the surface was in complete coverage with the apatite observed after 7 days of immersion. The corrosion rate had declined several folds and exhibited self-healing property. The incorporation of Gd3+ and F- ions in the apatite was observed from XPS analysis. The degraded products from the coating enhanced the proliferation rate and osteogenic gene expression. The bacterial colony count method confirmed that the coating possesses inherent antimicrobial activity.