MCrAlY-Al 2 O 3 composite coatings were prepared by high-velocity oxygen fuel thermal spraying with bespoke composite powder feedstock for high-temperature applications. Powder processing via a suspension route was employed to achieve a fine dispersion of a-Al 2 O 3 submicron particles on the MCrAlY powder surface. This was, however, compromised by * 50% less flowability of the feedstock during spraying. Nevertheless, the novel powder manufacturing process introduced in this study has shown potential as an alternative route to prepare tailored composite powder feedstock for the production of metal matrix composites. In addition, the newly developed MCrAlY-Al 2 O 3 composite coatings exhibited superior oxidation resistance, compared to conventional MCrAlY coatings, with the formation of nearly exclusively Al 2 O 3 scale after isothermal oxidation at 900°C for 10 h. The addition of a-Al 2 O 3 particles in the MCrAlY coatings as a second phase was found to have promoted the formation of YAG oxides (Y x Al y O z) during spraying and also accelerated the outwards diffusion of Al, which resulted in enhanced oxidation resistance.