The main solution to the challenge of maintaining maximum sealing in the compressor section of each gas turbine is the use of abradable coatings. These coatings have a double duty, including (a) maintaining the lagging and (b) protecting the tips of the rotor blades. Choosing the type of abradable coating primarily depends on the service temperature of the coating. Nickel-graphite (Ni-G) coating is a good choice for use up to 480 °C and, or steel/sub-alloy rotor blades. In this research, the Ni-G coating was applied by the flame spraying method of Ni-G powder with a thickness of about 250 μm on an SS420 stainless steel substrate. The effect of the composition of the bonding layer was also investigated using two compositions, Ni-5Al and NiCrAlY. Obtaining the knowledge of applying Ni-G coating by flame spraying, identifying the structural and compositional characteristics of the coating (through optical and electron metallography), and the effect that oxidation can have on the tribological behavior of the coating were among the goals of this project. The best conditions for spraying the Ni-G coating were achieved an oxygen gas pressure of 6 bar, oxygen flow rate of 18 L min−1, acetylene pressure of 1.5 bar, acetylene flow rate of 24 L min−1, and the distance between the gun head and the sample surface was 22 cm. The results showed that placing the coating in oxidizing conditions increases its coefficient of friction. The increase in the coefficient of friction was attributed to the formation of oxide shells on the surface of the coating after 500 h of exposure to oxidation conditions. Corresponding to the higher coefficient of friction, the oxidized coating showed a decrease in wear resistance as a result of oxidation. This result can show the decrease in abradable of this coating with increasing service time.