The idea of codepositing various second‐phase particles in electrodeposited (ED) or electroless deposited (EL) metal or alloy matrix and thereby taking advantage of their desirable qualities, such as hardness, wear and abrasion resistance, and corrosion resistance, has led to the development of ED and EL composite coatings with a wide range of possible combinations and properties. This article presents an overview of the deposition methodologies involved in preparing ED and EL composite coatings, the mechanism of codeposition of particles, challenges and issues on particle incorporation in the metal matrix, particularly on the dispersibility of particles, and the interaction between particle and metal matrix during deposition. In addition, the influence of particle incorporation on the nucleation, plating rate, adhesion, surface appearance, roughness, microstructure, texture, hardness, tribological characteristics, and corrosion resistance of composite coatings, and some of the key applications of composite coatings are addressed.