Several coatings configurations of combined aluminizing and diffusion layered aluminide on 316 steel were produced and characterized. These coatings, typically employed as thermal barrier coating (TBC), can also be effective as vibration reduction elements at intermediate and high temperatures. This preliminary work has been focused on the microstructural design and processing effects of the coatings. The damping of the produced specimens was measured up to 450°C and compared with that of the steel substrate. The most performing coatings contain an Al-Si layer and exhibit a steep damping increase above 200 °C, reasonably due to dislocation movements by plastic straining of soft alloy layer and to the interface sliding between layers with different elastic moduli.