The addition of both elements (Cr and Ni) and carbides (SiC and WC) during laser surface alloying under different processing speeds produced surfaces with both enhanced hardness wear resistance and corrosion properties compared to the base AISI 4340 steel material. These effects were due to the evolution of unique microstructures within the laser-processed region, which includes austenite, ferrite, martensite, Fe- and Si-based carbides and the retention of the original carbides (SiC and WC) in various combinations. The chromium and nickel stabilized the austenite and ferrite but reduced the formation of martensite that is useful to increase the hardness and prevent cracking. Also, the substantial dissociation of the original carbides (SIC and WC) into elemental silicon and tungsten supplemented the stabilization of ferrite and reduction in the hardness. The presence of the undissociated carbides and some martensite formation provided substantial increases in the microhardness. The improvement of both the mechanical properties and corrosion resistance might be self-exclusive due to the reduction of the carbides and the subsequent inability of the matrix to prevent cracking.