Ni-Y2O3-ZrO2 nanocomposite coating was prepared by co-deposition of nickel, Yttrium oxide (Y2O3) and zirconium oxide (ZrO2) nanoparticles using ultrasonic electrodeopsition. The surface morphology and composition of coatings were ananlyzed by an environmental scanning electron microscope (ESEM) and energy dispersive spectrometer(EDS). The high temperature oxidation, microhardness and wear resistance of the coatings were investigated. It is found that both the incorporation of nanoparticles and the use of ultrasonic could refine Ni crystal grains and improve properties of the coatings. The Ni-Y2O3-ZrO2 nanocomposite coating prepared with ultrasonic exhibits finer grains, higher microhardness and better oxidation and wear resistance.