NiCr coatings with different contents of La₂O₃ were produced on carbon steel by flame spray and then furnace fused processing. A field emission gun scanning electron microscope (FEGSEM), energy dispersive X-ray (EDX) microanalysis and X-ray diffraction analysis (XRD) were employed to observe the microstructure characteristics of the coatings. The effect of La₂O₃ on microstructure and mechanical properties of coatings was investigated. The result shows that the addition of La₂O₃ would refine and purify the microstructure of the coatings, when the addition of La₂O₃ is about 0.8 wt.%, the coatings obtain the highest hardness.