Addressing the issue of cracking in laser-cladding Ni-based composite coatings with WC particles, this study explored an approach to fabricating a crack-free coating by incorporating ZrW2O8 powder. The influence of varying ZrW2O8 contents on the crack susceptibility, microstructure, microhardness, wear resistance, and corrosion resistance of Ni60/WC composite coatings was systematically examined. The findings indicate that the ZrW2O8 content significantly impacts the microstructure and functional properties of the coating. Furthermore, it is suggested that the main contributors to preventing crack formation and diffusion are believed to be the pressure interaction caused by the negative expansion effect of ZrW2O8, as well as the in situ phase transition and diffusion toughening of ZrO2 during its decomposition process. The feasibility of achieving crack selfhealing through the addition of specific amounts of ZrW2O8 powder has been conclusively demonstrated.