Ni-Y2O3 nanocomposite coating was electrodeposited from a nickel sulfamate solution containing Y2O3 particles and ultrasonic was applied during the process of the electrodeposition. The surface morphology and microstructure of the composite coatings were analyzed by a scanning electronic microscope (SEM) and a high-resolution transmission electron microscope (HRTEM). The corrosion resistence of the coatings was evaluated in the solution of 10 wt.% HCl aqueous solution. The results indicate that the Ni-Y2O3 nanocomposite coating shows a refined crystal grain and improved corrosion resistance compared with pure Ni coating. The Ni-Y2O3 nanocomposite coating prepared under ultrasonic condition exhibits a superior corrosion resistance due to the formation of denser structure and finer-grain scale.