In this study, Eulerian finite element analysis is used to explore the deformation and bonding behavior of composite particles deposited by cold spraying. The objective is to account for shear instability and bonding as well as the geometry of the deforming material. An accurate description of the geometry is essential when the amount of deforming material is limited as in composite particles. Another goal is to provide a framework for modeling the impact of agglomerates. In this case, deposition is influenced by bonding and fragmentation or detachment due to plastic rebound. To account for the latter effect, thin layers of nonbonding material are added to particle and substrate surfaces in the model. Simulations of metal-clad ceramic particles show that there is a critical shell thickness beyond which maximum stress in the hard phase abruptly increases.