This paper investigates the microstructure and hardness of the aluminum oxide-NiCr dispersion powder for thermal coatings. Aluminum oxide dispersion strengthened NiCr powders are prepared by using high energy ball milling process. The powders are used to produce dispersion strengthened HVOF coating. The morphology of the oxide dispersion strengthened powder as well as coating are investigated. Hardness and coating wear resistance are tested. It is observed that, by milling with nano scale aluminum oxide, the dispersed powders are less homogeneity. Better mechanical properties can be expected from this powder when inhomogeneity is overcome. Paper includes a German-language abstract.