Influence of induction plasma gas composition on Ti coatings microstructure and composition has been studied. Plasma sprayed Ti powder and coatings were prepared by using induction plasma system. Spheroidization of irregular shaped particles was observed in the powder collected after spraying with Ar-air plasma. Microstructures of the coatings were analyzed by a high-resolution scanning electron microscope. Image analysis of the backscattered images of the cross-sectional view of the coatings was used to calculate coating porosities. X-ray diffraction analysis was also performed to identify secondary phases, which have been formed in the coatings during plasma spraying. Partially induced nanostructures were observed in fractured areas in the coatings. The nanostructures were preferentially formed on the surface of splats. X-ray diffraction pattern reveals that a secondary phase has been formed in the coatings during spraying with air vol. at 16 % and 20 % in plasma gas. Changes of the coating density and thermal diffusivity were studied with respect to the formation of secondary phases and induced nanostructures.