Nanocrystalline hydroxyapatite (HAp-Ca-10(PO4)(6)(OH)(2), 35 nm) and magnesium (Mg2+) ion incorporated HAp were synthesized by microwave technique. XRD (X-ray diffraction), FTIR (Fourier transform infrared spectroscopy), FE-HRTEM (Field emission high resolution transmission electron microscopy), DLS (dynamic light scattering), EDXRF (energy dispersive X-ray fluorescence spectrometry), microhardness, permittivity and alternating current (ac) conductivity, besides the PL (photoluminescence), wettability and in vitro bioactivity of the samples were analysed. EDXRF revealed the Mg2+ ion incorporation in HAp. The me ion incorporation did not alter the phase but drastically reduced the crystallite size and particle size respectively by 48% and 32%. There was enhanced microhardness (24%) at low level (<13%) and decreased zeta potential of Mg2+ ion incorporation. The permittivity, ac conductivity, PL, wettability and in vitro bioactivity were enhanced on me ion incorporation. These properties enable them to be a promising candidate for wound healing, bone replacement applications and also as a biosensor. (C) 2015 Elsevier Ltd. All rights reserved.