In this research, the laser rapid manufacturing (LRM) additive manufacturing process was used to deposit multifunctional hydroxyapatite (HAP) coatings on high nitrogen stainless steel. LRM overcomes the limitations of conventional coating processes by producing coatings with metallurgical bond, osseointegration, and infection inhibition properties. The microstructure, microhardness, antibacterial efficacy, and bioactivity of the coatings were investigated. The microstructure studies established that the coatings consist of austenite dendrites with HAP and some reaction products primarily occurring in the inter-dendritic regions. A Vickers microhardness test confirmed the hardness values of deposited HAP coatings to be higher than those of the bare 254SS samples, while a fluorescence activated cell sorting test confirmed their superior antibacterial properties as compared with pristine samples. The coated samples immersed in simulated body fluid showed rapid apatite forming ability. The results obtained in this research signify the potential application of the LRM process in synthesizing multifunctional orthopaedic coatings.