The investigation of the oxidation resistance and tensile behavior of aluminide coated and uncoated Ti6Al4V at room temperature and at 600 °C was carried out. Ti-Al coating was developed on Ti6Al4V by Hot-dip Aluminizing technique followed by solution treatment (900 °C/1 h), quenching in water and ageing treatment (500 °C/6 h). For a comparative analysis, the diffusion heat treatment was performed with and without oxygen plasma environment. The diffusion treatment without oxygen plasma is referred as thermal treatment while the diffusion treatment with oxygen plasma is referred as plasma treatment. The cyclic oxidation test was carried out for uncoated samples, thermally treated (THT samples) and plasma treated samples (PAHT samples) at 600 °C for 120 h. Significant improvement in the oxidation resistance was observed for coated samples. Weight gain during oxidation studies in PAHT samples is almost 100 times less than uncoated samples and 8 times less than THT samples. The tensile test conducted at room temperature and at 600 °C showed marginal reduction of Ultimate tensile strength (UTS) and Yield strength (YS) of substrate for PAHT samples and THT samples. Plasma processing yields nanocrystalline coatings which have been found to improve oxidation resistance and would help address oxidation issues in gas turbine applications.