This study investigates the influence of reactive MgO (r‐MgO) replacement levels and water‐to‐binder (w/b) ratios on the compressive strength, carbonation front, and pore structure of mortars with r‐MgO and Portland cement (r‐MgO‐PC) as binder. The experimental results reveal that an increase in the w/b ratio decreases the carbonation degree for mortars with 20% r‐MgO, but increases the carbonation degree for mortars with 60% r‐MgO. The r‐MgO replacement level together with the w/b ratio and carbonation degree impacts the type and quantity of the carbonation products, namely Mg‐calcite, nesquehonite and the hydrated amorphous Mg carbonate, which affects the pore structure and compressive strength of the matrix. The maximum strength for mortars with 20% r‐MgO occurs at the lowest w/b ratio (0.45), while the maximum strength for mortars with 60% r‐MgO occurs at the intermediate w/b ratio (0.65). A design of r‐MgO replacement level, w/b ratio in conjunction with the drying and carbonation curing regimes is needed for further advancement and application r‐MgO‐PC system.