Abstract: NiCrAlY coatings were prepared on stainless steel substrates by arc ion plating technique. The coating samples were tested in phase, surface morphology, micro-determination chemical composition, storage modulus and loss modulus. The results showed that uniform NiCrAlY coating can be fabricated on steel substrate by arc ion plating technique. The variation of arc current during the preparation influenced the surface topography and chemical constitution of the coatings to a certain extent, while the influence on the sample phases was not observed. The testing results of storage modulus and loss modulus were obtained to study the damping characteristics of NiCrAlY coatings. It approved that the damping properties of the substrates are prominently ameliorated by NiCrAlY coating.