Phase transformations during annealing of coatings sprayed with the high‐velocity oxy‐fuel technique using Ti2AlC powder have been investigated by in situ X‐ray diffraction. The as‐deposited coatings, consisting of Ti2AlC, Ti3AlC2, TiC, Ti–Al, and oxides, are stable up to 500°C. Ti3AlC2 forms above 550°C and Ti2AlC forms above 700°C by intercalation of Al into TiCx. For temperatures between 900°C and 1100°C, Ti3AlC2 and Ti2AlC decompose by losing Al to the surrounding matrix resulting in TiCx and Al2O3. The thermal expansion coefficient between ambient and 700°C is 11.9 × 10−6 K−1. The thermal diffusivity at room temperature is 10.5 × 10−6 m2/s.