The thermal fatigue performance of Stellite 12 coating deposited on X32CrMoV33 hot work tool steel via the plasma transfer arc (PTA) process was investigated under steel thixoforming conditions. Stellite 12 coating has made a favorable impact on the thermal fatigue performance of the X32CrMoV33 hot work tool steel. The latter survived steel thixoforming conditions lasting much longer, for a total of 5000 cycles, when coated with a PTA Stellite 12 layer. This marked improvement is attributed to the higher resistance to oxidation and to temper softening of the Stellite 12 alloy. The Cr-rich oxides, which form during thermal cycling, provide adequate protection to high-temperature oxidation. In contrast to hot work tool steel, Stellite 12 alloy enjoys hardening upon thermal exposure under steel thixoforming conditions. This increase in the strength of the coating is produced by the formation of carbides and contributes to the superior thermal fatigue resistance of the Stellite 12 alloy. When the crack finally initiates, it propagates via the fracture of hard interdendritic carbides. The transformation of M 7 C 3 to M 23 C 6 , which is more voluminous than M 7 C 3 , promotes crack propagation.