Nanostructured NiCrAlY coating was deposited by cold spray, using a milled powder for applications as a bond coat to thermal barrier coating. A shot-peening treatment was then applied to the as-sprayed coating to modify the coating surface morphology. The oxidation behavior of the coating with the shot-peened surface was investigated under isothermal oxidation at 900°C and 1,000°C for different times. The oxidation behavior of the coating was characterized through surface morphology and cross-sectional microstructure by scanning electron microscopy and X-ray diffraction analysis. It was found that a uniform oxide layer was formed on the surface of the shot-peened nanostructured NiCrAlY coating during oxidation at temperatures of 900°C and 1,000°C. The nanostructure of the initial coating possibly promoted rapid formation of α-Al 2 O 3 oxide. It was clearly revealed that the surface morphology of the coating significantly impacted the morphology of the oxide. The surface geometry of the cold-sprayed MCrAlY coating must be modified to promote formation of a protective oxide film during oxidation, through application of a post-treatment process such as shot-peening.