In this study, microstructure and biocompatibility of gradient bioceramic composite coating fabricated by Wide-Band Laser Cladding is investigated. The experimental results indicate that the coating consists of an alloyed transition layer and the bioceramic coating. The bioceramic coating is mainly comprised of HA, CaTiO3, CaO, α-TCP, β-TCP and TiO. The coral-shaped structure and short-rod piled structure existing on the surface of coating. After the implantation of the bioceramic coatings into dogs’ femur for 6, 12, and 24 weeks, hypersusceptibility, rejection and pathological changes are not found. No fiber cyst, necrosis of bone tissue and chronic inflammation obviously appear through slice observation of hard tissues. The bioceramic coating with different ratios of Ca : P have different abilities to induce osteogenesis. At Ca: P=1.4 and 0.6wt.% Y2O3 (No.3 sample), the bioceramic coating is of best bioactivity and biocompatibility.