This review systematically examines the mechanisms and recent research progress of magnesium ions in promoting tendon-bone interface repair by regulating stem cell functions. Firstly, the analysis indicates that magnesium ions synergistically regulate stem cell proliferation, migration, and multidirectional differentiation through multiple signaling pathways, while simultaneously promoting angiogenesis and optimizing the immune microenvironment. Subsequently, a summary of existing research findings confirms that magnesium-based biodegradable biomaterials demonstrate favorable tissue repair-promoting effects in animal experiments. Finally, this article proposes that, given the spatiotemporal sequential characteristics of magnesium ion regulation on stem cells and the healing microenvironment, future research should focus on developing novel smart materials capable of precisely controlling magnesium ion release to match the healing process, thereby advancing its clinical translation and precision medicine applications in the field of tendon-bone repair.