Abstract: The present paper has studied a combined process of both hydrometallurgical reduction and solid phase thermal diffusion for the production of Ni-Cr alloy coated composite powder. The effects of thermal diffusion temperature and duration, activator, Cr powder used as raw material and core material etc. on the properties of the composite powder were investigated. The physical and chemical properties of the alloyed composite powder produced under various technological conditions were determined. The oxidation resistant behevior of the composite powder at high temperature in air was also studied.