The development of bioabsorbable zinc-based alloys with tailored mechanical properties and biocompatibility holds great promise for advancing medical implant technology. In this study, Zn–Mg and Zn–Mg–Ag alloys were synthesized using mechanical alloying (MA) followed by extrusion to achieve a combination of enhanced strength, ductility, and corrosion resistance. MA for 4 h produced ultrafine-grained powders incorporating Mg2Zn11 intermetallic phases and oxide particles, which contributed to microstructure stabilization during subsequent processing. Extrusion consolidated these powders into dense materials with a uniform grain size of ∼700 nm, exhibiting ultimate tensile strengths up to 435 MPa and elongation to fracture of ∼12 %, representing a significant improvement over conventional processing methods. The addition of silver further enhanced the antibacterial properties, demonstrating notable efficacy against Staphylococcus epidermidis, while maintaining non-cytotoxic behavior in vitro. Corrosion rates remained low, with uniform surface degradation and the formation of protective corrosion layers. This work highlights the efficacy of combining powder metallurgy techniques to bioabsorbable zinc-based alloys with exceptional mechanical performance, corrosion behavior and in vitro cytocompatibility, providing a pathway for next-generation biodegradable medical devices.