The aim of this paper is to develop a composite coating on St 304 steel employing TIG process. Ti wire cored with graphite powder is used as the means of coating material. The process parameters are varied in order to develop coating with optimum characteristics (i.e., hardness and wear resistance). The microstructure of the coating is analyzed with SEM and XRD. It is found that both of the hardness and wear resistance increase as the current increases while both of these properties decrease as the travelling speed increases. It is found that the coated samples with composite layers have more hardness than the substrate and it could range up to 1100 HV being almost 4.5 times higher than the hardness of St 304. Likewise, the wear resistance of coating is observed to be 4.5 times higher than that of substrate. The high performance of coating, as revealed by microstructural analysis, is due to formation of TiC and Cr₂₃C₆ .The optimum conditions to produce the coating are proposed to be 120 A current and 3.17 mm/s travel speed.