The rapid degradation of magnesium-based implants in physiological environments in vivo not only will quickly deteriorate their mechanical strengths but will also lead to a severe change of the micro environment around the implants, which may cause the final failure of magnesium-based implants. In this work, a polycaprolactone (PCL) layer was prepared to seal the plasma electrolytic oxidization coating (PEO) to form a PEO/PCL composite coating on a biodegradable AZ31 magnesium alloy, followed by further surface functionalization with polydopamine. The in vitro degradation behaviors of the bare AZ31 alloy and coated samples were evaluated in a simulated body fluid (SBF) using the potentiodynamic polarization curve test and the static immersion test. The bioactivity of the samples was investigated using the SBF soaking test. The cytocompatibility of all samples was evaluated using the cytotoxicity test and analysis of the adhesion and proliferation of osteoblast cells (MC3T3-E1) directly cultivated on the sample surface. The results showed that the PCL layer successfully sealed the pores of the PEO coating, and then the polydopamine layer formed on its surface. The in vitro degradation tests showed that the PEO/PCL composite coating improved the corrosion resistance of the AZ31 alloy in SBF with a more positive corrosion potential and a lower corrosion current density. Due to the protection of the PEO/PCL composite coating, the surrounding environment showed nearly no influence on the degradation of the coated sample, which led to no obvious local alkalization and hydrogen evolution. Moreover, compared with the AZ31 alloy and PEO coating, the PEO/PCL composite coating was more suitable for cell adhesion and proliferation. After further surface functionalization by polydopamine, the corrosion resistance of the composite coating was maintained, while its bioactivity was significantly enhanced with a large amount of hydroxyapatite (HA) formed on its surface after immersion in SBF. The initial cell adhesion and spread were also improved by the polydopamine. By further immobilizing polyhexamethylene biguanidine (PHMB) onto the coating surface via the assistance of polydopamine, good antibacterial ability was obtained. This feasible method for fabricating a cytocompatible and antibacterial composite coating on a biodegradable AZ31 alloy may be promising in implant applications due to the osteointegration and anti-infection properties of these materials post operation. (C) 2016 Elsevier B.V. All rights reserved.