The correlation of microstructure and wear resistance in ferrous coatings applicable to diesel engine cylinder bores was investigated in this study. Seven kinds of ferrous spray powders, two of which were stainless steel powders and the others blend powders of ferrous powders mixed with Al 2 O 3 -ZrO 2 powders, were sprayed on a low-carbon steel substrate by atmospheric plasma spraying. Microstructural analysis of the ferrous coatings showed that various Fe oxides such as FeO, Fe 2 O 3 , and ␥ -Fe 2 O 3 were formed in the martensitic (or austenitic) matrix as a result of the reaction with oxygen in air. The blend coatings containing ␥ -Al 2 O 3 and t-ZrO 2 oxides, which were formed as Al 2 O 3 -ZrO 2 powders, were rapidly solidified during plasma spraying. The wear test results revealed that the blend coatings showed better wear resistance than the ferrous coatings because they contained a number of hard Al 2 O 3 -ZrO 2 oxides. However, delamination occurred when cracks initiated at matrix/oxide interfaces and propagated parallel to the worn surface in the case of the large hardness difference between the matrix and oxide. The wear rate of the coating fabricated with STS316 powders was slightly higher than other coatings, but the wear rate of the counterpart material was very low because of the smaller matrix/oxide hardness difference due to the presence of many Fe oxides. In order to reduce the wear of both the coating and its counterpart material, the matrix/oxide hardness difference should be minimized, and the hardness of the coating should be increased over a certain level by forming an appropriate amount of oxides.