The rising prevalence of orthopedic conditions, driven by an aging population, has led to a growing demand for advanced implant materials. Traditional metals such as stainless steel and titanium alloys are biologically inert and often necessitate secondary surgical removal, imposing both economic and psychological burdens on patients. Biodegradable zinc-based alloys offer promising alternatives due to their moderate degradation rates, biocompatibility, and tissue-healing properties. However, existing studies on Zn-Fe alloys primarily focus on composition optimization, with limited investigation into how processing methods influence their performance. This study explores the effects of rotary forging on the microstructure and mechanical properties of Zn-0.5Fe alloys. By refining grain structure and promoting dynamic recrystallization, rotary forging achieves significant improvements in ductility (60% elongation, a 114% increase compared to the extruded state) while maintaining corrosion resistance. Electrochemical and immersion tests reveal that rotary forging produces a denser and more protective corrosion layer, thereby improving the degradation performance of the material in simulated body fluid. Cytotoxicity and fluorescence staining tests confirm excellent biocompatibility, validating the material's suitability for medical applications. These findings elucidate the mechanisms by which rotary forging enhances the properties of Zn-0.5Fe alloys, providing a novel approach to tailoring biodegradable implant materials for orthopedic applications.