The effects of co-addition CeO2 and SiC particles on the morphology, surface cracks, microstructure, precipitated phases and wear property of plasma beam spraying Fe55-based coatings on 1025 steel were investigated by optical microscopy (OM), scanning electron microscopy (SEM), energy-dispersive X-ray spectrometer (EDS), ultra-deep field microscope and wet sand rubber wheel friction tester, respectively. The results showed that the dendrite exhibited a directional growth pattern perpendicular to the substrate and the transitional states of microstructure with the co-addition CeO2 and SiC particles. With addition of CeO2 or SiC affected the flowability of molten steel at macro level, leading to a reduction in the liquid phase diffusion coefficient DL of Cr and C and resulted in a decrease in the G/R ratio. The dendrites changed into equiaxed grains. The main phase composition of Fe55 welding layer is Cr7C3, γ-Fe. The grain boundaries consisted mainly of a reticular eutectic structure. The worn-out uniformly surface of the Fe55+1.5 wt% SiC+0.01wt% CeO2 with Ra was 0.28 μm was smoother than that of other samples. The sub-wear mechanisms during the friction process were microploughing and microcutting. The hardness and toughness of Fe55+1.5 wt% SiC+0.01wt% CeO2 were well-matched, avoiding excessive microcutting and microplastic deformation.