Ni-WC composite coating was prepared on Q235 steel substrate by plasma transfer arc (PTA) with welding current ranging from 70 A to 85 A. The results show that the dissolution behaviour of WC particles and the elemental diffusion at the interface promoted by the increased welding current promote the formation and evolution of precipitates, including M7(B, C)3 and M6C. The increased current reduced the volume fraction of WC particles in the coating, but increased that of the precipitates. At welding currents of 75 A and 80 A, dendritic-like M7(B, C)3 presented a regular distribution at the bottom of the coating. At a welding current of 80 A, M6C phase began to form at the bottom of the coating. When the welding current reached 85 A, the dendritic structure was broken, and the M6C phase aggregated and grew. The Ni-WC coating had visible delamination. WC particles at the upper part of the coating dissolved more severely compared to those at the middle and bottom of the coating. Ni3Si compound was formed at the upper and middle of the coating, and it had a crystal orientation relationship of [011]Ni3Si∥[011]γ-Ni, (11-1)Ni3Si∥(11-1)γ-Ni, (−200)Ni3Si∥(-200)γ-Ni, (-11-1)Ni3Si 1.3° from (-11-1)γ-Ni with γ-Ni. The average hardness of the coating decreased slightly due to the dissolution of WC, but the hardness at the interface increased, showing an improved bonding of the interface. The newly formed high hardness precipitates can share the load coming from the friction paired ball, thus reducing CoF and wear loss of the coating.