This study elucidates the effect of carbon nanotube (CNT) addition on the splat formation in plasma sprayed aluminum oxide (Al2O3) composite coating using experimental and computational methods. CNT content was varied as 0, 4 and 8wt.% in Al2O3 matrix. With an increasing CNT content, splat morphology became more circular and disk-shaped. The average diameter of disk-shaped splats increased from 28.6±1.4μm for Al2O3 to 43.2±1.3μm for Al2O3–8wt.% CNT. The population density of splats with fingers, fragments, and voids was the lowest for the highest (8wt.%) CNT content. The addition of CNTs resulted in two simultaneously competing phenomena viz. increased thermal capacity and increased viscosity of the melt. Increased thermal capacity delayed the localized solidification resulting in higher splat diameter while agglomeration of CNTs at the periphery of the splat results in higher viscosity of the melt which suppresses the splat fragmentation that leads to increased population density of disk shaped splats. Splat morphology of three compositions was also simulated using SIMDROP software, which showed a good agreement with the experimentally collected splats.