Post-treatment is crucial to improve the comprehensive performance of laser-cladded martensitic stainless steel coatings. In this work, a low-temperature tempering treatment (210 °C), for the first time, was performed on the laser-cladded AISI 420 martensitic stainless steel coating. The microstructure and properties of the pre- and post-tempering specimens were carefully investigated by XRD, SEM, TEM, a micro-hardness tester, a universal material testing machine and an electrochemical workstation. The results show that the as-cladded AISI 420 stainless steel coating mainly consisted of martensite, austenite, Fe3C and M23C6 carbides. The phase constituent of the coating remained the same, however, the martensite decomposed into finer tempered martensite with the precipitation of numerous nano-sized Fe3C carbides and reverted austenite in the as-tempered specimen. Moreover, a slight reduction was found in the micro-hardness and tensile strength, while a significant increase in elongation was achieved after tempering. The fractography showed a transition from brittle fracture to ductile fracture accordingly. The as-tempered coating exhibited a striking combination of mechanical properties and corrosion resistance. This work can provide a potential strategy to enhance the overall properties of the laser-deposited Fe-based coating for industrial applications.