Autologous bone grafting remains the gold standard for almost all bone void‐filling orthopedic surgery. However, autologous bone grafting has several limitations, thus scientists are trying to identify an ideal synthetic material as an alternative bone graft substitute. Magnesium‐doped biphasic calcium phosphate (Mg‐BCP) has recently been in the spotlight and is considered to be a potential bone substitute. The Mg‐BCP is a mixture of two bioceramics, that is, hydroxyapatite (HA) and β‐tricalcium phosphate (β‐TCP), doped with Mg2+, and can be synthesized through chemical wet‐precipitation, sol–gel, single diffusion gel, and solid state reactions. Regardless of the synthesis routes, it is found that the Mg2+ preferentially accommodates in β‐TCP lattice instead of the HA lattice. The addition of Mg2+ to BCP leads to desirable physicochemical properties and is found to enhance the apatite‐forming ability as compared to pristine BCP. In vitro results suggest that the Mg‐BCP is bioactive and not toxic to cells. Implantation of Mg‐BCP in in vivo models further affirmed its biocompatibility and efficacy as a bone substitute. However, like the other bioceramics, the optimum physicochemical properties of the Mg‐BCP scaffold have yet to be determined. Further investigations are required regarding Mg‐BCP applications in bone tissue engineering.