Aim: The aim of this study was to characterize the properties of polyvinyl alcohol-chitosan (PVA-CS) coated magnesium (Mg) substrate to study its potential use as a bio-implant. Materials and methods: The present study coated pure Mg substrate by immersion in the PVA-CS solution. The coated samples were evaluated using contact angle measurements, atomic force microscopy (AFM), scanning electron microscopy (SEM), energy dispersive X-ray analysis (EDAX), infrared spectroscopy (IR), and cytotoxicity in the presence of MG63 cells. An uncoated sample of pure Mg was used as a negative control for comparison in all the tests. The parameters mentioned were used to characterize the surface interactions and properties of the Mg samples in the presence of PVA-CS coating. Results: The presence of coating on the substrate was confirmed by EDAX analysis and its elemental composition was noted, confirming the presence of PVA-CS coating on Mg substrate. The PVA-CS coated surface displayed a higher contact angle (105.7°) than the uncoated sample (74.2°). Reduction in average surface roughness was noted following the PVA-CS coating on Mg substrate (uncoated Mg 419 nm, PVA-CS coated Mg 157 nm). Cell viability of the PVA-CS coated Mg indicated low toxicity in biological tissue. Conclusion: PVA-CS coating on Mg substrate indicated greater contact angle, with a homogenous surface topography, significant biocompatibility, and low toxicity in comparison to the uncoated Mg substrate. Clinical significance: Coating on pure Mg with PVA-CS has demonstrated properties superior to the uncoated Mg sample. Additional in vitro and clinical studies are required to study the performance of the coated material to evaluate its potential use as a bio-implant material.