In this paper, a commercial AZ91D magnesium alloy powder and its mixture with 30 vol.% SiC powder were used to deposit coatings by cold spraying. Two types of converging-diverging nozzles with different cross-sectional shapes were employed. The velocity and temperature of in-flight particles under different operating conditions were simulated using the FLUENT software. The simulated results show that the particle velocity through the rectangular cross-section nozzle is the same with that through the circular one. However, the coating observation shows that the AZ91D coating and its composite could only be deposited using the rectangular cross-section nozzle. The increase of gas temperature has little effect on the coating microstructure, porosity and microhardness. Furthermore, the observation of the composite coating produced under the gas temperature of 600°C shows that the SiC content in the composite is about 23 vol.%. The microhardness of the composite is improved to about 140 HV0.3 due to the enhancement of SiC particles, compared to that of about 100 HV0.3 for the AZ91D coating.