Ni-xAl-Y2O3 (x = 14.5 or 17.6 wt%) coatings were developed by vacuum annealing the electrodeposited Ni-Al-Y2O3 composite coatings with dispersed Al and Y2O3 microparticles in Ni matrix at 800 °C for 3 h. For comparison, pure Ni-xAl (x = 15 or 18 wt %) coatings were also produced in the same condition. The results indicated that all coatings consisted of γ′-Ni3Al+β-NiAl and the addition of Y2O3 refined the grain of alloy coatings. Cyclic-oxidation at 900 °C showed that the alumina scale adhesion increased with the increase of Al content and Y2O3 further improved the adhesion of alumina scale due to the beneficial effects of Y2O3 reducing void formation at the scale/coating interface. Together with this, the produced Ni-Al coatings exhibited better cyclic oxidation than cast Ni3Al alloy and Ni-17.6Al-Y2O3 coating even exhibited a comparable cyclic oxidation as cast β-NiAl alloy.