Flame spraying nickel-based alloy coatings containing CeO2 or without it were prepared. A Shimazu-M model microhardness tester and a D-Max/RB model X-ray diffractometer (all made in Japan) were performed to determine the microhardness and phase structure of the coatings respectively. A block-on-ring friction and wear tester (similar to Timken tester, made in China) was used to examine the friction and wear properties of the coatings. Then the friction and wear properties of the coatings were correlated to their microhardness, phase structure, and compositions and characteristics of the surface film etc. on the basis of observing and determining the morphologies and elemental distributions in the worn surfaces with an electron probe micro-analyser and an X-ray photo electron spectroscope respectively. It was found that the addition of CeO2 can increase the microhardness of the coating, and the optimal adding amount of CeO2 is between 4 wt.% and 6 wt.%. Moreover, CeO2 had little effect on the frictional coefficient but caused higher wear of the frictional counterface. Meanwhile the CeO2 contained in the coating can enhance the formation of oxide film in the worn surface and abate the adhesion action during friction process. Since the CeO2 particles are quite harder than the base nickel metal, so adhesion and abrasion dominated for CeO2-containing coating, while adhesion dominated for the coating without CeO2.