Oxidation behavior of NiCrAlY powder, blended with nano and micro sized Al2O3 and Y2O3 was studied to understand the effect of nano/micro oxide powder dispersion. The blended powders were applied on the IN 718 substrates by HVOF technique. The present work compares the oxidation behavior of IN 718 superalloy, coated with NiCrAlY powders, dispersed with nano and micro Y2O3, Al2O3 oxide. Coated samples were characterized by XRD, SEM/EDAX in terms of surface composition, scale cross section and the identification of different phases. The oxidation tests were carried out at 1223K, 1323K, 1423K in air. Oxidation kinetics infer that at 1223 K and 1323 K, nano yittria addition, in fact, resulted in higher oxidation rate, while nano alumina addition resulted in lower oxidation rate. The effect was more pronounced at 1423 K, where the nano and micro size alumina, yttria addition, resulted in bringing down the oxidation rate considerably.