In this research work, we have studied the impact of Yttrium nanoparticles loaded with corrosion inhibitors dodecylamine (DOC) incorporated in polyolefin for the corrosion protection of steel. The surface analysis of pure polyolefin and polyolefin-Y2O3-DOC composite coatings by atomic force spectroscopy (AFM) shows that both of the coated samples’ roughness almost remain the same. Furthermore, the contact angle measurement shows an increase in the hydrophobicity of polyolefin-Y2O3 with inhibitor. The release behavior of the corrosion inhibitors DOC was also studied at different pH. The x-ray diffraction for the loaded product shows that no physical and structural changes occur during the loading of the corrosion inhibitor. The electrochemical impedance spectroscopy (EIS) analysis demonstrates that smart polyolefin-Y2O3-DOC coating has better anticorrosion properties than pure polyolefin coating due to the effective release of DOC. An increase in charge transfer and pore resistance confirms the better barrier properties of the polyolefin-Y2O3-DOC composite coating. The inhibition efficiency of the polyolefin modified by Y2O3 increased by 99% as compared to pure polyolefin coating. The carbon steel substrate became stable and the polymeric composite coating protectected the steel against corrosion in the oil and gas industry. In conclusion, the study shows that yttrium nanoparticles loaded with corrosion inhibitors incorporated in polyolefin have a significant impact on the corrosion protection of steel.