Magnesium alloys are of growing interest for a number of applications in the automotive industry. An impediment to their increased usage is the low resistance to both wear and corrosion compared to steel or aluminium due to its low hardness and chemical affinity for numerous elements respectively. This paper describes the results of experiments investigating Nd:YAG laser cladding of AS 21 magnesium alloy with a mixture of Aluminium Silicon (40% wt) and Tungsten Carbide (60% wt) powder to improve its wear properties. The effects of laser power, scan speed, powder feed rate and shielding gas on the clad layer thickness and its hardness were examined. The result indicates that for the processing speed of 200 mm/min and powder feed rate of 7.5 g/min, the thickness of the clad layer decreased from 1.7 mm to 0.3 mm when the laser power was reduced from 1.6 kW to 1.4 kW. That changing of the parameter also produced less porosity in the clad layer, while the quantities of microcracks remained the same. When the proce ssing speed was decreased from 300 mm/min to 200 mm/min at 7.5 g/min and 1.4 kW, the layer thickness increased from 0.8 mm to 1.7 mm. The clad layer produced has few microcracks. The hardness of the clad layer was up to 145 HV which was at least a factor of two greater than that of the AS 21 substrate (54 HV).