Fine grained AZ31 magnesium alloy treated with HNO3 was coated with electrospun polycaprolactone (PCL) nanofibres. Entire surface of the alloy was found to be coated with non-woven PCL nanofibrous mat with an average fiber diameter of 400 nm. The effect of coating on biodegradation and biomineralization of the samples were studied by immersion test conducted in supersaturated simulated body fluid (SBF 5×). The immersion test showed that the PCL coating reduced degradation rate. The surface of the immersed samples analyzed using scanning electron microscope (SEM) fitted with X-ray energy dispersive spectroscopy (EDS) confirmed that the PCL coating protects the surface from chloride ion attack and avoid pitting corrosion. Moreover the coated samples also had calcium phosphate (CaP) phases adhering on the surface which are essential for bone implant applications. Hence, nanofibrous PCL coating on fine grained AZ31 may be tried for degradable metallic implant applications to have a controlled degradation rate and enhancement of bioactivity. © 2017 Elsevier Ltd.