Hypereutectic Fe–Cr–C–Ti–Nb coatings with N additives were developed by surface-hardening welding (hardfacing). The experimental results showed that the primary M7C3 carbides were refined by the N additives in the coatings. Based on the micro-morphologies of M7C3 and (Ti,Nb)(C,N), the (Ti,Nb)(C,N) was present inside the primary M7C3 carbides, and they were tightly combined. The mismatch between the (010) crystal plane of M7C3 and the (110) crystal plane of (Ti,Nb)(C,N) was 6.15%, which indicated that (Ti,Nb)(C,N) was moderately effective as a heterogeneous nucleus of M7C3 carbides. Therefore, the preferentially precipitated (Ti,Nb)(C,N) in the Fe–Cr–C–Ti–Nb coating was the heterogeneous nucleus of the primary M7C3 carbides and thereby refined the primary M7C3 carbides.