The additive (3wt%) nano-particles of anatase-TiO2 and monoclinic-ZrO2 were prepared using ball-milling method to form Al2O3/3wt%TiO2 and Al2O 3/3wt%ZrO2 nanocomposite powders. The incorporation of nano-particles can significantly enhance the microstructure and mechanic properties of Al2O3-base coating. The phase of microstructure coating was present mostly of ?- Al2O3 and α- Al2O3 phases, while anatase-TiO2 was transformed to rutile-TiO2 and monoclinic-ZrO2 was changed to tetragonal-ZrO2 due to such high temperature of plasma plume. SEM microstructures of the coatings mainly displayed a lamellar structure of Al2O3 with interlarmellar pores and well dispersed splats of TiO2 and ZrO2 phases. The Al2O 3/3wt%ZrO2 presented the lowest value of friction coefficient and sliding wear rate. It was found that the plasma-sprayed composite coating possessed better wear resistance than that of monolithic Al2O3 coating. The addition of nano-particles was found to improve friction coefficient and sliding wear resistance. © (2012) Trans Tech Publications, Switzerland.