Laser surface melting on ZM61 magnesium alloy is carried out by a continuous CO2 laser under a rapid water-cooling condition. The microstructure and phase constitution of the melted layer are analyzed by optical microscopy, scanning electron microscopy (SEM) and X-ray diffraction (XRD). The microhardness, and wear resistance and corrosion resistance of the melted layer are tested by Vickers microhardness tester, scratch testing machine and electrochemical workstation, respectively. The results show that the melted layer consists mainly of regular columnar dendrites with a significant fine-grain strengthening effect in the water-cooling condition. The phase constitution is altered by the laser melting process, that is, the substrate is mainly consisted of α-Mg and the interdendritic network intermetallic compound Mg7Zn3 while Mg7Zn3 phase partially decomposed into Mg2Zn3 phase during the laser melting process. In comparison to the substrate, the microhardness of the melted layer is enhanced obviously. The peak hardness of the melted layer is 120.4 HV, which is about twice of that of the substrate. The tribilogical property of the melted specimen is improved with a 59.8% wear mass loss of the substrate.The corrosion resistance of the alloy is slightly decreased with the corrosion potential of the melted layer (-1.4455 V) in comparison to that of the as-received alloy (-1.4262 V).