Electrodeposited nanocrystalline Ni-W alloy coatings are projected as potential alternatives for hard chrome (HCr) coatings owing to their comparable hardness and superior corrosion resistance. However, the limited strain hardening ability of the nanocrystalline Ni-W coatings manifests in their poor resistance towards solid particle erosion involving a high strain-rate (>103 s−1) deformation. In the present study, a novel microstructural engineering strategy has been implemented to enhance the strain hardening ability of the nanocrystalline Ni-W coatings without compromising on their strength/hardness. Ni-W multilayer coatings composed of alternatively stacked soft (2.6 GPa) and hard (8.5 GPa) Ni-W layers were developed using the pulse reverse electrodeposition technique. Further, to investigate the effect of individual layer thickness (λ), multilayer coatings with different λ were deposited. Solid particle erosion testing using the angular SiO2 particles showed that the multilayer coatings (irrespective of λ) exhibit superior erosion resistance compared to the homogeneous nanocrystalline Ni-15W at both oblique (θ = 30°) and normal (θ = 90°) impact conditions. The post-erosion microstructural analysis of the multilayer coatings revealed that the hard Ni-W layers undergo uniform strain (ε > 50 %) without cracking due to the constrained co-deformation imposed by the surrounding soft Ni-W layers. Therefore, the enhanced erosion resistance of the multilayer coatings is attributed to the effective dissipation of impact energy through co-deformation of the individual hard and soft Ni-W layers.