A design strategy deployed in developing new biodegradable Mg–Y–Zn alloys is summarized and the key factors influencing their suitability for medical applications are described. The Mg–Y–Zn alloys reveal microstructural features and mechanical characteristics expected to be appropriate for vascular intervention applications. The focus of this article lies in the evaluation of the degradation performance and biological response of the alloys with respect to their potential as implant materials (stents). The degradation characteristics analyzed by immersion testing and electrochemical impedance spectroscopy in simulated physiological media reveal slow and homogeneous degradation. In vitro cell tests using human umbilical vein endothelial cells indicate good cytocompatibility on the basis of the alloys’ eluates (extracts). Animal studies carried out with pigs on Mg–2Y–1Zn (in wt.%) reveal an auspicious in vivo performance. Evaluation of preparations derived from implants in various types of tissues indicates homogeneous degradation and only limited gas formation during in vivo testing. The characteristics of the tissue reactions indicate good biocompatibility. The new Mg–Y–Zn alloys show an interesting combination of preferred microstructural, mechanical, electrochemical and biological properties, which make them very promising for degradable implant applications.