• The present investigation evaluates the influence of furnace heat-treatment (HT) on the microstructure, microhardness, fracture toughness and erosion resistance of three plasma sprayed composite coatings: a Inconel625-30wt% micron-sized Al2O3 (In625-MHT) coating, a Inconel625-30wt% nano-sized Al2O3 (In625-NHT) coating and a Inconel625-15wt% micron-sized Al2O3 + 15wt% nano-sized Al2O3 (In625-BHT/bimodal) coating. High temperature solid particle erosion tests were conducted at 900ºC temperature and with at two different impingement angles (90 and 30) in simulated environment using standard erosion-test rig. Coatings were subjected to detailed mechanical and microstructural analysis in order to better understand their erosion mechanism and structure-property correlation. By healing pores and cracks, the furnace HT increases the coatings' erosion resistance in the order of In625-BHT, In625-NHT, and In625-MHTcoating. In addition, the mechanical properties of In625-BHT coating like porosity (1.0±0.09%), micro-hardness (1299±25Hv) and fracture toughness (5.9MPa√m) are significantly improved after HT. The presence of grooves and lips on the surfaces of uncoated substrates provides clear evidence that the erosion mechanism involves the combined processes of micro-ploughing and micro-cutting indicating ductile erosion mode. However unimodal and bimodal composite coatings demonstrated a brittle erosion mode.