Fe-Ni-Cr alloy powders with CeO2 were flame sprayed and fused on the surface of 1045 carbon steel substrate. The effect of CeO2 on microstructure and tribological behavior of coatings were studied experimentally by means of scanning electron microscopy (SEM), field emission gun scanning electron microscopy (FEGSEM), energy dispersive spectroscopy (EDS) and wear tests. The results show that an adhered oxide debris layer was formed on the worn surface in friction which contributed to decreased wear. Wear rate of the material increased with the load, but dramatically decreased at first and then slightly decreased the sliding speed. The friction coefficient of the material decreased slightly with the load, but increased with sliding speed at first, and then tended to be a constant value. Wear mechanism of the coatings was oxidation wear and a large amount of counterpart material was transferred to the coatings, the RE oxide in the debris layer contributes to the improvement in wear resistance.