The success of bone repair using an internal fracture fixation technique is critically dependent on the stability and biological process between the fragmented bones. However, the currently used bone plates mainly focus on stability rather than biology of healing, which subsequently (a) results in significant stress-shielding effects and (b) prevents stress from transferring from the bone plate to the bone during the healing process. This study proposes a novel design of a bone plate for the fixation of long fractured bones, which can mitigate these disadvantages to strike a balance between stability and biology. The new multi-material design adopts stainless steel (SS316L) and magnesium alloy (AZ31B) of three thicknesses such as SS316L (1mm)-AZ31B (2mm), SS316L (1.5mm)-AZ31B (1.5mm), and SS316L (2mm)-AZ31B (1mm). The mechanical properties (bending stiffness and moment) of the bone plates were evaluated according to the ASTM: F382-17 standard. Static corrosion tests were conducted in Hank’s Balanced Salt Solution (HBSS) at 37.5 °C. Compared with those of the original (non-corroded) bone plates, the maximum load-carrying capacities of the corroded bone plates decreased from 670 N to 495 N, 891 N to 518 N, and 928 N to 709 N in the case of SS316L (1mm)-AZ31B (2mm), SS316L (1.5mm)-AZ31B (1.5mm), and SS316L (2mm)-AZ31B(1mm), respectively. Digital image correlation was utilized to evaluate the inter-fragmentary strain (IFS) in the physical model of fractured bone plates. The IFS increased from 0.526 to 0.815, 0.484 to 0.784, and 0.455 to 0.533 in the case of SS316L (1mm)-AZ31B (2mm), SS316L (1.5mm)-AZ31B (1.5mm), and SS316L (2mm)-AZ31B (1mm), respectively, when a load of 200 N was applied. An optimized design of the bone plate of SS316L and AZ31B for granulation tissue formation based on Perren’s theory and IFS was successfully proposed.