High temperature oxidation behavior of MCrAlY coatings was studied at several temperatures in the range from 800 to 1100°C. In this study the MCrAlY coatings were obtained by plating using CrAlY as precursor powders in an electrolytic bath containing nickel and cobalt salt in solution. The size of the precursor CrAlY powders used was generally below 10 um. As-plated coatings consisted of a random distribution of CrAlY particles in the Ni-Co matrix. The heat-treatment of the as-plated coatings at elevated temperature resulted in the development of a gamma and beta structure. Both as-deposited and oxidized coatings were characterized by optical, scanning electron microscope and electron beam microprobe. During oxidation the coatings formed alumina scale with a negligible amount of transient nickel and chromium oxides. The spallation resistance of the oxide scale was investigated by thermal shock testing. The test consisted of a rapid cooling from 1000°C to 100°C with a two- minute dwell time at the maximum temperature. The thermal shock test was conducted in a) as–deposited and heat-treated condition and b) after preoxidation at 800°C and 1050°C, respectively. The coatings retained the alumina scale during thermal shock cycling.