Mg alloy has become promising materials for industrial structural and transport applications due to their attractive properties such as low density,high specific strength, good electrical and thermal condivity. The poor wear property is the major concern when it is subjected to motion in automotive or other engine components.To improve its wear property , many different surface engineering methods have been developed. Laser surface cladding technology is a very promising one among these methods.Nano-Al2O3 particles are dispersed on the ZM5 surface by laser surface engineering to improve its wear resistance property. Laser processing is carried out with a 500 W pulsed Nd∶YAG laser by melting preplaced nano-Al2O3 particles on the surface of ZM5. Following laser processing, a detailed microstructural analysis of the surface modified layer is carried out. The microhardness of the surface layer is measured as a function of laser parameters and wear resistance property was evaluated in details. Microhardness of the surface layer is significantly improved to as high as 350 HV as compared to 100 HV of the substrate compared to the as-received specimen, the wear resistance property of the laser surface modified samples is considerably improved.