The large-sized industrial gas turbine blades exhibit non-uniform microstructural degradation in various parts due to ultra-long term service in high-temperature and high-pressure environments. Determination of degradation behavior at critical locations is important for the safety of gas turbine and blades refurbishment program. The microstructure characterization on the surface and interface of MCrAlY coated Ni-based superalloy blades have been studied. The microstructure evolution near the coating/ substrate interface was studied by scanning electron microscope (SEM) and the difference in degradation of the main precipitates at several locations were quantified. Surface oxidation and interfacial diffusion were analyzed through energy dispersive spectrum (EDS) and electron probe microanalyzer (EPMA) to clarify the influence of elemental diffusion on microstructure. The results indicated that regional microstructure evolution influenced by the spatial structural characteristics of the blades. The migration of Ni, Al, Cr, and Co dominated the diffusion mechanism during service, and reconstructed the microstructure of the coating/substrate interface and surface.