It is challenging to obtain the underwater wet laser cladding layer with excellent properties while maintaining formability. In this paper, the method of using synchronous mechanical vibration assisted in the underwater wet laser cladding process of TiN/Fe-based cladding layer was introduced. The effect of mechanical vibration frequency on the dilution rate, microstructure, corrosion resistance, tribo-corrosion behavior of the cladding layer was studied. The result displayed that with increase of mechanical vibration frequency, the dilution effect of the substrate was obviously weakened and the phase changed from ferrite to ferrite and austenite, and TiN particles were evenly distributed. In addition, the grain size of the cladding layer showed a tendency to decrease first and then increase. When the mechanical vibration frequency was 400 Hz, the grain refinement phenomenon was the most obvious and the average grain size was 8.39 μm. Based on the effect of dispersion strengthening and fine grain strengthening, the microhardness and wear resistance of the cladding layer assisted at 400 Hz were improved, and the wear rate was 1.17 × 10−15m3N−1 m−1. While the cladding layer assisted at 400 Hz exhibited better corrosion resistance by forming a dense passivation film. In addition, the mechanism of mechanical vibration on microstructure evolution and performance enhancement of the cladding layer was also analyzed. This study provided the theoretical support for the formability of the underwater laser wet cladding assisted by mechanical vibration.