Ag-MoO₃ contained NiCrAIY based composite coating was successfully prepared on GH4169 stainless steel substrate by high energy ball milling and laser cladding. The microstructure and phase transformation were investigated by scanning electron microscopy (SEM) equipped with energy dispersive spectroscopy (EDS) and X-ray diffraction spectrum (XRD). The tribological behavior and mechanism from room temperature to 800 ℃ were investigated. Results showed that MoO₃ in the composite powders transformed to Mo₂C reinforcement under the high energy density of laser, and a series of opposite transformation occurred during friction process. The coating showed the lowest friction coefficient and low wear rate at 600 ℃ and 800 ℃ due to the generation of Ag₂MoO₄ during tribo-chemical reactions and the formation of lubrication glaze on the worn surface. Ag made effective lubrication when the temperature rose up to 200 ℃. The coating displayed a relatively high friction coefficient (about 0.51) at 400 ℃, because though MoO₃ (oxidation products of Mo₂C) and Ag₂MoO₄ were detected on the worn surface, they could not realize effective lubrication at this temperature. Abrasive wear, adhesive wear and plastic deformation contributed to the increased friction and wear.