The　high　energy　ball　milling　technique　is　an　effective　method　for　producing　metal　matrix　composites.　Al2O3　dispersion　strengthened　316L　stainless　steel　powders　were　prepared　using　high　energy　ball　milling　process.　The　milled　powders　were　sprayed　using　a　high　velocity　oxy-fuel　spraying　process.　The　microstructure　and　microhardness　of　the　milled　powders　and　corresponding　coatings　were　investigated.　The　abrasive　wear　resistance　of　the　coatings　was　evaluated　using　pin-on-disk　tests.　It　was　found　that　most　of　the　Al2O3　particles　distributed　uniformly　in　316L　stainless　steel　matrix　after　milling　had　smaller　size　than　1　μm,　and　consisted　of　micron-sized　particles,　sub-micron　sized　particles　and　nano-scale　particles.　The　microhardness　of　the　milled　powders　increased　with　increasing　milling　time.　No　obvious　change　of　the　microstructure　of　the　milled　powders　after　spraying　was　observed.　However,　the　coatings　were　softer　than　the　milled　powders,　and　the　composite　coatings　were　much　more　wear　resistant　than　the　single　matrix　material　coatings.