Abstract: A high quality and no-crack coatings on a middle carbon steel by laser-clading nickel-based alloy powder with a proper addition of In₂O₃ was obtained. The microstructure of clad layers was analyzed. The microhardness and wearing resistance tests were also conduted. The results indicate that a microhardness distribution in the cross-section of clad layers with In₂O₃ is much more uniform, and the coatings possess higher wearing resistance compared to that without In₂O₃, even though the microhardness reduces a little. The improvement of properties of laser-clad In₂O₃-added nickel-based coatings can suppress the formation of big and brittle hard-phases, improve the dendrites distribution, refine the grains and enhance the toughness of clad layer.