The objective of this study was to improve the oxidation resistance of electroplated Ni-Cr coatings by introducing a fine dispersion of yttria (Y2O3) nanoparticles to the coatings. A technique was developed to produce Y2O3 nanoparticles 54(+-)2 nm in size. Electroplating conditions were also investigated and it was found that pulse plating could produce high quality coatings without cracking. The Y2O3 nanoparticles were then co-deposited with Ni-Cr and formed a fine dispersion in the coating. The Ni-Cr-Y2O3 composite coatings had improved oxidation resistance compared with the conventional Ni-Cr coatings. It is believed that this is due to Y2O3 nanoparticles causing finer grains to occur, thereby improving oxide scale adhesion.