The Fe-based composite coating reinforced by in situ synthesized multiphase ceramic particles has been successfully prepared by laser cladding preplaced powder on 42CrMo steel. The experimental results of X-ray diffraction and scanning electron micrograph indicate the coating is consisted by γ-Fe phase and Fe-Cr fine phase which possesses the better oxidation resistance and corrosion resistance. In-situ synthesized V(C,N), Cr2B3 and Cr3C2 particulates which are uniformly distributed in the composite coatings. The wear test showed that these reinforcement particulates improved significantly wear resistance of the coatings. The wear mass loss of the coating is about one tenth of the 42CrMo substrate. Laser cladding layers have better oxidation resistance. The oxide scale of the coatings is one eighth of the substrate through 750 constant temperature for 120h oxidation.